Understanding Gratuity Calculations: Is Salary Just Basic or More?

vinodsingh.hr

Dear members,

What does salary mean when we calculate gratuity under the act? Is it basic+D.A or only basic, or gross including bonus?

Vinod

R.N.Khola

We are to take into consideration only the Basic wage & DA for the calculation of the gratuity amount. For further details, you may refer to section 2(s) of the Payment of Gratuity Act, 1972, for the definition of 'wages'.

With Regards,
R.N.Khola

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