PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Industrial Relations And Labour Laws
Sr.manager - Hr&admin
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Gratuity is calculated based on last drawn Basic (+DA if applicable). You can verify by yourself by applying the below formula
Last drawn Basic (+DA ) * 15/26 * number of years completed. If there is any change in the amount you may cross check with your HR Department.
From India, Madras
Madhu.T.KThis is a bad practice of HRs to take only the basic pay for calculation of gratuity. In my opinion the total salary should qualify for gratuity. If your gross salary qualifies for deciding the amount to be deducted if the employee takes a leave without pay, why should for gratuity calculation you should take only the basic salary and DA? Please follow the following link also
Madhu T K: Payment of Gratuity and Gratuity Qualifying Salary
From India, Kannur