Gratuity Calculation for Private and Government Employees
As per the 2010 amendment, gratuity is to be calculated for private company employees as 15 days of the last drawn salary multiplied by the number of years of service. Whereas for government employees, it will be 15 days of the last drawn basic salary plus DA. Am I right?
In private companies, they break the monthly basic salary into basic, HRA, and special allowance just for the PF contribution. This will be the monthly basic salary, whereas all other variable allowances do not come into the purview of the basic monthly salary!
As per the 2010 amendment, gratuity is to be calculated for private company employees as 15 days of the last drawn salary multiplied by the number of years of service. Whereas for government employees, it will be 15 days of the last drawn basic salary plus DA. Am I right?
In private companies, they break the monthly basic salary into basic, HRA, and special allowance just for the PF contribution. This will be the monthly basic salary, whereas all other variable allowances do not come into the purview of the basic monthly salary!