Gratuity payment related query

Soumalya Sen (Querist) 28 January 2020 This query is : Resolved
I have a question to help my friend.Please if anyone can help.If his basic salary is INR 11750 and he have worked for a company for 7 yrs and 8 months and have resigned from the company on 21st November then what will be his Gratuity amount payable.
The company where he has worked for has computed his basic INR 8225/- based on 21 days on November 2019 after which he resigned and calculated the last drawn basic for gratuity payment.
Now my question is the last drawn basic on which the gratuity calculation is to be made will be Rs.11750/- or Rs. 8225/-?

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This discussion addresses a query regarding gratuity calculation for an employee who resigned after 7 years and 8 months. The core question is whether the gratuity should be calculated based on the employee's full basic salary of INR 11750 or a reduced amount of INR 8225, which the company proposed. Experts confirm that gratuity is calculated using the last drawn basic salary and a standard formula, and suggest the company's attempt to reduce the basic pay for this calculation is incorrect.

Raj Kumar Makkad (Expert) 28 January 2020
Last drawn salary cannot be reduced for the purpose of calculating the gratuity as there is set formula to get it calculated which is furnished here under:

How to calculate gratuity
Calculation of gratuity.
a) For employees covered under the Act. There is a formula using which the amount of gratuity payable is calculated. ...
(15 X last drawn salary X tenure of working) divided by 26. ...
b) For employees not covered under the Act. ...
(15 X last drawn salary X tenure of working) divided by 30.

Advocate Suneel Moudgil (Expert) 29 January 2020
1. gratuity will be calculated on the basic pay,
2. basic pay will be 11750/-
3. HR is trying to lower the liability in an illegal manner

Sb Karma (Expert) 29 January 2020
yes your gratuity is only based on basic pay..no other means to be considered for its calculation

kavksatyanarayana (Expert) 29 January 2020
I agreed with the adivse of above experts.

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