Are All My Salary Allowances Counted for Gratuity Calculation? Let's Discuss

Rajendran1968
My wages/salary include:

Basic Pay
HRA
Conveyance Allowance
Children's Educational Allowance
Medical Allowance
Uniform Allowance
Flexible Allowance

Basic + DA is eligible for Gratuity. I want to know if all the above allowances are eligible to calculate Gratuity.
umakanthan53
Dear Rajendran,

When the wages or salary are structured into different components, only the basic and the dearness allowance, whatever its nature may be such as fixed, variable, etc., and whatever its name may be - dearness pay, dearness allowance, additional dearness allowance, etc. - are to be taken into the computation of gratuity. In the case of consolidated payment, the entire sum should be taken into account.
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