Gratuity Payment Confusion: Does Leave Deduction Affect Final Salary Calculation?

Hi All,

Payment of Gratuity calculation is done on the basis of the last drawn salary (after 5 years of continuous service). If an employee has a leave deduction in the last month, it will affect their basic salary. I would like to know if the last month's salary will be taken after the effects of leave deduction on the basic or the previous month's salary drawn (that has no effect of leave deduction).

Could you please help?

Regards,
Winston

Dear,

This is to be given on the rate of the last drawn salary (rate of Basic & DA) by the employee.

With Regards,
R.N. Khola

It should be calculated based on the last drawn Basic and DA, which is the last Basic + DA as per his increment letter. Forget about any deductions in Basic + DA that occurred due to leave taken.

Dear team,

Please forget about deductions due to leave, PF, or ESI. Instead, please consider the rate of the last salary, which includes basic pay and DA.

Thank you.

Hi all,

Can you please mention if the last salary comprises 100% basic plus DA or if it is mentioned in percentage? If so, what is the figure?

Regards,
Bhoopalan T

Dear,

Not only do you have to consider the last drawn basic salary, but based on this, you may calculate for further requirements.