Gratuity Calculation Confusion: Does BATTA Count as DA for Drivers?

Hi Everybody,

I have a doubt regarding the gratuity calculation. Is the BATTA charge given to drivers considered as DA? And is this amount taken into account for gratuity calculation? I hope my friends will provide a clear answer to my question.

Thanks, ANU MOHAN DHAS

I don't think that there is any specific direction about the treatment of Batta in PF and gratuity. Batta, being an amount payable on the basis of trips undertaken by a driver or a similar employee, will vary according to his daily duty, whereas dearness allowance will be fixed either as a percentage of basic wage or based on the consumer price index. The variable DA, as the latter denotes, is also fixed but varies only to the extent of CPI. Similarly, Batta is not a regular earning for a driver and is not considered for leave wages or other benefits. As such, I feel that Batta will not be considered on par with DA and need not be taken into account for gratuity calculation.

Regards,
Madhu.T.K