Does Gratuity Calculation Include Incentives

dodejarl
Dear Sir,
I would like to know whether the various incentives and allowances we get as a part of our pay packet should be included in our average remuneration for the purpose of gratuity calculation. The incentives could be in the form of production incentive, attendance bonus,housing allowance and various other allowances.Or is the gratuity calculation only on the basis of basic plus DA.
Regards,
dodejarl.
Madhu.T.K
Gratuity is calculated on the last drawn salary of the employee which includes basic salary and dearness allowance only.
Regards,
Madhu.T.K
amit1272
dear seniors in gratuity i would like to ask you that is it calculated on last drawn or last three months drawn salary? litle bit confusion in this regard. plese suggest.
R.N.Khola
Dear Member,
While calculating gratuity under the P G Act, 1972 we are to consider the monthly rate of wages last drawn by the employee.
With Regards,
R.N.Khola



Madhu.T.K
Amit's confusion is genuine because for piece rated workers the gratuity is calculated on the basis of average wages earned for the last three months.
Regards,
Madhu.T.K
amit1272
piece rated employees means employees employed for piece production.right ? And wages paid on the basis of production.
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