Gratuity Confusion: Is 37,000 the Right Amount After 12 Years in a Private Company?

Hi, I have a query regarding gratuity entitlement. I have worked in a private company for the last 12 years, and my gratuity amount is 37,000. My HR manager and Accounts Manager said this is the final amount. Can anyone help me, please?

Regards, Durai

Hi, Gratuity is calculated based on the last drawn Basic (+DA if applicable). You can verify this yourself by applying the formula below:

Gratuity Calculation Formula:
Last drawn Basic (+DA) * 15/26 * number of years completed.

If there are any changes in the amount, you may cross-check with your HR Department.

This is a bad practice for HRs to consider only the basic pay for the calculation of gratuity. In my opinion, the total salary should qualify for gratuity. If your gross salary qualifies for deciding the amount to be deducted when an employee takes leave without pay, why should only the basic salary and DA be considered for gratuity calculation? Please follow the following link as well:

[Madhu T K: Payment of Gratuity and Gratuity Qualifying Salary](http://madhu-t-k.blogspot.com/2019/10/payment-of-gratuity-and-gratuity.html)