Gratuity Calculation - Special Allowance

Suresh. R
As Per the 2010 amendment gratuity to be calculated for private companY employees it will be 15 days last drawn salary into number of years service whereas govt employees it will be 15 days last drawn basic salary plus DA.am I right??in private companies they break 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 basic monthly salary!!!!!
Suresh. R
if anyone can please Differentiate salary and wages terms in gratuity payments, if a employee gets monthly salary of 15000 which includes hra and special allowance where no da because of private company then his half month salary or 15 days salary will be 7500. hence to calculate gratuity payment 7500 x no of years service.Whereas private companies follow to pay the lesser than half month in the name of basic part of the salary in 15000.For example in a monthly salary of 15000 they will break this into basic 7500 and Hra 3500 and 4000 special allowance. Here when calculating gratuity payments they calculate 15 days of the basic which will be 3750 x no of years service which is not half the month salary and moreover even the basic is divided into half and paid is that right calculation of gratuity payments!!! Please Any one can guide on this!!!!!!wages are paid to workers in a factory or industry whereas salary is paid in office work.
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