Gratuity Act Confusion: Which Salary to Consider if an Employee Resigns Mid-Month?

ajdave
As per the Gratuity Act, the last drawn salary of a resigned employee would be considered. However, if the employee works for only 2 days in a month and there is an increment in salary during that same month, which amount should be considered as the last drawn salary?
vmlakshminarayanan
Hi, Whatever the last drawn Basic + DA should be considered for Gratuity calculation. If an increment is given and affects only the new Basic, it should be taken into consideration for Gratuity calculation. However, if the increment is not implemented due to the resignation of the employee, then his/her last drawn Basic + DA can be considered.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute