Hi to all Can anybody suggest me which of the following heads to be included for calculating gratuity? basic salary HRA City compensatory allowances DA Medical allowances Conveyance Thanks Armaan
From India, Mumbai
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5From India, Mumbai
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While calculating gratuity, you should use BASIC & DA if DA is a part of the salary; otherwise, only basic. Find below the calculation of Gratuity:
Basic * 15 * total years of service / 26
Where:
- Basic = last basic drawn
- 15 = 1/2 of basic
- Total years = total years of service (should not be less than five)*
- 26 = 26 days (26 working days in a month)
*In the case of death, gratuity should be paid from the Date of Joining (DOJ) till the last day. Also, in the case of normal resignation, it should be a minimum of five years of continuous employment.
Trust this helps.
Regards,
Shiva
From India, Pune
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Basic * 15 * total years of service / 26
Where:
- Basic = last basic drawn
- 15 = 1/2 of basic
- Total years = total years of service (should not be less than five)*
- 26 = 26 days (26 working days in a month)
*In the case of death, gratuity should be paid from the Date of Joining (DOJ) till the last day. Also, in the case of normal resignation, it should be a minimum of five years of continuous employment.
Trust this helps.
Regards,
Shiva
From India, Pune
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