Gratuity Calculation [Thread 426300]

Hai friends,
I am working in a limited co. as Asst.Manager Accounts & Admn, kindly help in following query,
If the persons retires in the middle of the month, DA is variable, Grautity to be calculated on Basic + Previous month DA or basic+current DA? Please help me out in this regard?

Dear Mr. Harisesh,
It would be calculated as per previous month Basic + D.A x15/ 26 x Np. of years of service (minimum qulifying service put up is 5 years must)
The maximum amount payable is 3.50 Lakhs.
Hope this clarifies your query...

Gratuity is to be calculated on the last drawn salary (Basic + DA) and the maximum amount of gratuity as per Payment of Gratuity Act is Rs 10 lakhs. At the same time any higher amount can be paid if the employer is willing to pay. The additional amount over and above what is stated above will be taxable in the hands of employee and employer.
Regards,
Madhu.T.K

Dear Hari,
Gratuity = Last monthly Wages x 15 x years of completed service
Note:-
(i) Wages = Basic Wages + current DA
(ii) Maximum gratuity payable = 10, 00,000/-

Max. amount
Its 10lks for central government and 5 lakhs for state Govt.
More than 10lkhs also permissible, provided that amount will be taxed by the IT department.

Soumiks's interpretation of maximum amount of gratuity seems to be wrong since the Payment of Gratuity Act is not meant for government employees . It is 10 lakhs for all employees who are covered by the said Act.
Madhu.T.K