Confused About Gratuity Calculation During Notice Period: How Is My Basic Salary Affected?

Hello! Here is my last month's salary slip declaration. Now, I am in the notice period, and my last day is 11th May 2022. I have completed 7 years. I am confused about the basic salary for the current month.

Basic Salary: 41000
HRA: 16400
CA: 4100
Food Allowance: 2000
Children Allowance: 200
Statutory Bonus: 2000
LTA: 14500
PT: 200
EPF: 1800x2 = 3600
---------------------------
Gross: 80200
Net Amount: 78200

Understanding Gratuity Calculation

I want to understand how HR will calculate my gratuity amount.

Please help me.
From India

Gratuity Calculation

Your basic salary divided by 26, multiplied by 15, and then by the number of years completed.

For example: 41000/26 = 1576.92 * 15 * 7 = Rs. 165,577.00

Kumar Amar Singh

Gratuity Calculation Method

The calculation will be done as follows:

41000 (last drawn basic salary) * 15 * 7 years / 15

The normal rate of the last drawn monthly basic salary is considered, not the actual basic salary you are drawing in the last month or the last few days of the month.

It can also be said as 41000 multiplied by 7 years multiplied by 15 days divided by 26 days.

Warm Regards,
Bharat Gera
AV Consultants
[Phone Number Removed For Privacy-Reasons]

The actual Gratuity Amount calculation will be done by your Office HR, but in brief, you may calculate the Gratuity amount at 4.81% of your yearly basic salary multiplied by the number of service years.

= 41000 X 12 X 4.81% = 23,665 X 7 = 165,655.00

Best of luck with your new assignment.

Please find below the calculation for your records.

Gratuity Calculation

Actual Basic salary / 26 * 15 * number of years completed.

**Please note that if you have completed 7 years and 6 months, you will get 8 years of Gratuity.