Is Variable Dearness Allowance Included in Bonus, Leave Encashment, and Gratuity Calculations?

Hi,

Is variable dearness allowance part of calculating bonus, leave encashment, and gratuity?

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Hi,

Is the variable dearness allowance included in the calculation of bonus, leave encashment, and gratuity?

Bonus is paid at 8.33% of your salary (where salary is considered as basic pay). Some companies pay bonuses according to turnover at year-end.

Leave encashment is calculated on either Basic, Basic+DA, or Gross, depending on company policy.

Gratuity is calculated on Basic + DA + a percentage of turnover if paid any.

snjv.nair

Dear,

YES

With Regards,
R.N.Khola

Thanks for the reply. My question is whether the variable DA is considered for calculating bonus, leave encashment, and gratuity.