Dear members, what does salary means when we calculate gratuity under the act. Is it means basic+D.A or only basic or gross including bonus? Vinod
From India, Pune
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Dear Vinod,

We are to take into consideration only the Basic wage & DA for the calculation of the gratuity amount. For further details, you may refer to section 2(s) of the Payment of Gratuity Act, 1972, for the definition of 'wages'.

With Regards,
R.N.Khola


From India, Delhi
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