Gratuity Calculation Confusion: Should Grade Pay Be Included and What's the Current Cap?

Hello!

I am just wondering about Gratuity Calculators and formulas mentioned in various sections here. There is mention of Basic + D.A for the calculation of Gratuity. I would like to know if Grade Pay should be included in the calculation or excluded. Also, is the cap at 3.5 lakhs still applicable, or has it been revised to 10 lakhs?

I would highly appreciate a response to this query.

Regards

Hi,

The actual calculation is of Basic (for 15 days) * No. of years employment.

Regards,
Vinay

The calculation of Gratuity is as follows: (BASIC + DA) / 26, THEN MULTIPLIED BY 15, AND THEN MULTIPLIED BY THE NUMBER OF YEARS OF SERVICE. When calculating the number of years of service, it should be kept in mind that any excess of 6 months should be rounded off. The ceiling is still 3.5 lakh.

Sudipta Chaudhuri