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Sandip Kumar   03 March 2021

Gratuity calculation very confusing in my case

Respected Sir/Ma'am,

I have been working with an organization for the last 5 years and 6 months. I'm looking forward to a better opportunity. But I'm in a dilemma whether I'm eligible to get the gratuity or not. And if the answer is positive then what will be the value? 

My concern is, when I joined this company my Basic was 22140 and my salary also increased as the time went by but suddenly from the last increment I noticed my basic has been decreasing but other allowances like HRA, LTA, Flexi has been increased. My current basic is 14850.

So, according to calculation, my Gratuity was at the first year CTC Breakdown 12832.00 but at the 5th year CTC Breakdown my Gratuity is 8955.00. 

What will be the total amount at the time of leaving?

#1 > Simply adding every year's gratuity which my organization mentioned in my CTC?
#2 > Calculate, depending on the last Basic I withdrawn?

I would be highly obliged if you kindly ventilate my concern at your esteemed website and guide me with your valuable advice to face my HR at the exit interview.  


 3 Replies

Real Soul.... (LEGAL)     03 March 2021

Please instaed check with an accounts person or HR 

1 Like

Sandip Kumar   03 March 2021

Thanks for the advice.

Ritesh Maity (Labour Law Advocate)     07 March 2021

Gratuity will be calculated on the last drawn wages (Basic + DA).

In your case it will be on Rs.8955.

Now whether the company is legally entitled to change the salary structure, assuming without your consent and just to reduce their burden of statutory compliance, is a separate and debatable issue. 

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