Calculating Gratuity on Minimum Basic Wages: How Do You Do It?

Hello everyone, how do we calculate gratuity if we are paying employees based on minimum basic wages? For example, the gross salary of an employee who has worked in a company for 6 years is 48,000 (Min Basic 16,064 + HRA 10,646 + CA 10,646 + CCA 10,646).

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Components for Gratuity Calculation

Only the components of basic pay and dearness allowance last drawn have to be taken into account for the computation of statutory gratuity. In the given case, there is no dearness allowance but only basic pay and other allowances comprising HRA, C.A., which I infer to be conveyance allowance, and CCA. Therefore, the last drawn basic pay of Rs. 16,064 alone has to be taken for the purpose of gratuity.