How Is Gratuity Calculated When Your Salary Changes in the Last Month?

arunmjadhav
Dear Sir,

My basic salary till 5 years 11 months is Rs. 5000/-, and in the 12th month (last month of my employment), it was increased to Rs. 15000/- before I left the job.

I am seeking guidance on how my gratuity will be calculated. Will it be based on the increased salary of Rs. 15000 for the last month, or will an average of the 12 months' basic salary be considered since the Rs. 15000 was applicable for only one month?

Please advise.

Thank you.
Vijay Kumar HR Trainee
Dear Sir,

As your last drawn basic salary is Rs. 15,000/-, your gratuity calculation will be:

Gratuity = 15000 * 15/26 * 6

Therefore, your gratuity amount will be Rs. 51,923.
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