Formula of gratuity, consideration of DA is mandatory or not? - CiteHR
Vmhr@rediffmail.com
Sr. Manager (p&a)
Amit Aishwary Choudhary
Managing People At Work.
+1 Other

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Dear All, Please clarify on gratuity calculation,
In the general formula of gratuity, consideration of DA is mandatory or not??
Regards
Shabbir

As per the Payment of Gratuity Act,1972-
"Wages" means-
- Basic and Dearness Allowance (If any)
- It does not includes any Bonus, Commission, HRA, Overtime Wages, Special Allowance and Reimbursement are not taken for the calculation.
Regards,
Amit

Mr. Shabbir
I go with Mr. Amit and he is right too.
V.Murali

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