Gratuity Calculations

Sanjay (Querist) 03 July 2011 This query is : Resolved
As per gratuiy act last wages drawn is considered for calculatin gratuity. My Salary Brakup is Basic, HRA, SPL Allowance, Conveyance. For calculating do i need to add Basic+ Spl Allowance then multiply by 15 and divide by 26 and then multiply by number of years to get gratuity amount?

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Isaac Gabriel (Expert) 03 July 2011
Allowances are not included for calculation of the gratuity

Kamal Prasoon Sinha (Expert) 04 July 2011
Gratuity is calculated only on Basic+DA

Formula= Basic+DA x 15 days x No. of yrs. of service/26

regards
Kamal

K.S.Srinivas (Expert) 05 July 2011
Calculation of Gratuity:
Gratuity Payable = 15 days wages x Number of completed years of service.
(Part of year in excess of 6 months is counted as one year)
15 days wages = Monthly wages last drawn x 15 while divided by 26
The amount of gratuity should not exceed Rs.10,00,000/-
The current maximum limit is applicable from 24.5.2010.

WAGE MEANS PAY + DA