Confused About Gratuity Calculation? Seeking Clarification on Different Methods

Hi, I resigned from my services. I was working in the position of personal secretary to the Executive Director. I joined the company on 01/05/2001 and resigned on 31/05/2017, completing a total of 16 years of service.

Gratuity Calculation

My basic salary is Rs. 15,570/- and DA is Rs. 375. Therefore, I calculated my gratuity as follows:

15,570 + 375 = 15,945 x 15 x 16 / 26 = Rs. 1,47,184 would be my gratuity amount. However, I received a cheque for Rs. 1,29,360/- only. When I inquired with my accounts department, they mentioned that they are using this particular calculation method.

Clarification Needed

So, my question is, should I ask them for the formula they utilized in the calculation? Are there different formulas for calculating gratuity other than the one I have used?

Could someone please guide me? I require clarification.

Dear Member,

Your calculation of the Gratuity amount due to you is correct. Please ask your employer to furnish Form L under The Payment of Gratuity Act, verify the contents, and communicate with your employer in writing.

Thank you.