Hello,
The Act says that you need to calculate gratuity AT-LEAST on basis on basic salary. However there is nothing stopping the employer in calculating the gratuity on the basis of Basic salary AND any other allowance.
Also I'm sure that if you are providing gratuity, you would have got the gratuity plan's actuarial valuation done. Please check with the actuary he would have already done the required calculation or at least help you in it. If you need any help in the actuarial valuation, please let me know.
Thank
Ravi
The Act says that you need to calculate gratuity AT-LEAST on basis on basic salary. However there is nothing stopping the employer in calculating the gratuity on the basis of Basic salary AND any other allowance.
Also I'm sure that if you are providing gratuity, you would have got the gratuity plan's actuarial valuation done. Please check with the actuary he would have already done the required calculation or at least help you in it. If you need any help in the actuarial valuation, please let me know.
Thank
Ravi