Gratuity calculation - Last drawn basic means - last month payslip basic or basic mentioned in ctc - CiteHR
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(last drawn basic / 26) x 15} x no. of years of service
Last drawn basic means - last month payslip basic or basic mentioned in ctc.
Is basic taken from ctc or monthly payslip for calcutaing gratuity
Do all mnc companies have same rule for gratuity(i.e. which basic they consider payslip wise or ctc basic)
If an employee was on loss of pay for half the month - his salary will be reduced obviously and basic in salary slip is also reduced.
When the employee decides to quit. What basic should we consider - his last month payslip basic or his actual basic in CT irrespective of monthly basic?
Example : actual basic per ctc 30000
Last month basic according to payslip 15000(due to loss of pay)
Which one should we consider 30k or 15k?
Please help

Hi, I think actual basic salary....!
There is no doubt..calculate employee's gratuity on their actual basic which is 30,000/-.
Hi Bharani,
It's not always the same like what you described. LWP (leave without pay or Leave on loss of pay) not necessarily should result in downward revision of pay. A firm's leave policy might allow LWP for whatever reason therefor provided for the purpose without reducing the emoluments, if the leave thus availed by the employee is authorised. But if really results in reduction as described as per the policy different from others no one can interfere. It's known that when such LWP is availed normally no increment is granted/forfeited for the period on LWP(NOT ACTUALLY WORKED) and he/she may be permitted to rejoin where he/she left. This type of leave also doesn't normally results in 'break-in-service'. If you indicate pertinent policy in vogue there it may be possible for me to give my views on it.

Last Drawn Basic + DA/26 * No. of years of service completed. More than 6 months service should be reckoned as one year
Hi
Last drawn basic means what ever last basic awarded to the employee as per his last appraisal letter. Please don't refer the initial ctc as per apt order

If he had not attended the work for the whole month, would you take the Gratuity as zero. The calculation should be on Last drawn (full) Basic+DA salary. Basic+DA x 15/26x No. of years service (more than 6 months service be treated as 1 year. )
Last withdrawn salary , which means his actual salary.
Regards

Basic Salary + Variable Dearness Allowance fixed if any by the Company should be taken for the purpose of calculation of Gratuity. It is not the Basic and VDA earned in that particular month in which the employee has last worked. Hope this is clear to you.
There are two concepts - Notional Salary and Actual salary. Notional salary is the salary fixed for any employee for a specific period as per terms and conditions of employment. Actual salary is actually earned by any employee in a particular month which may be more or less than Notional salary- more ( for OT ) less ( for LWP ).
Gratuity should be calculated on the basis of Notional Salary not on actual salary.
S K Bandyopadhyay ( WB, Howrah)
+91 98310 81531


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