Gratuity Calculation Confusion: Is It Based on Basic or Gross Salary?

Gratuity Calculation Inquiry

You are requested to inform me about the gratuity calculation. I would like to know on which aspect the gratuity calculation is based: Basic salary, Gross salary, or at what percentage it is calculated.

Thank you.

Gratuity Calculation Details

Gratuity is payable on completion of 5 years of service at 15 days' pay for every completed year of service. If a person has not worked for 240 days in any year, then they will not be entitled to gratuity for that year. The calculation will be as follows:

((Monthly Basic/26) x No. of years of service x 15)

Regards,
Rajendra Bhavsar
Manager (P&A)
Afcons Infrastructure Limited
CMRL Project, Chennai
[Phone Number Removed For Privacy Reasons]