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Akhamadbhai (Admin Manager)     26 September 2023

Regarding gratuity

Dear Sir,
In My Appointment order Gratuity shown on Full Gross salary ( Instead of Basic Salary). Now I am going to be retired on next 8 months.
Which is applicable to me garduity on Gross salary or Basic Salary


 15 Replies

Isaac Gabriel (Advocate)     26 September 2023

Your last drawn pay,DA,and special pay if any would be taken for the calculation of gratuity.

kavksatyanarayana (subregistrar/supdt.(retired))     26 September 2023

Yes. Very well advised by the expert Sri Isaac Gabriel sir.

T. Kalaiselvan, Advocate (Advocate)     27 September 2023

For the calculation of gratuity, salary includes only Basic salary and Dearness Allowance (DA). There won't be any other components that will be considered for the calculation of gratuity here.

Akhamadbhai (Admin Manager)     27 September 2023

Dear Sir,


As per appointment letter graduity shown in CTC including all aalownce + components (On Gross Total salary) which is already clearly

mentioned in my appointment letter

kavksatyanarayana (subregistrar/supdt.(retired))     27 September 2023

So why bothered?

Akhamadbhai (Admin Manager)     27 September 2023

But comapny paid many employees on Basic salary although there is mention Graduity on Total Pay inculding all allowances.

So I want to know it clear?

Dr. J C Vashista (Advocate and Legal Consultant)     28 September 2023

I agree with the reasoned opinion and advise of learned experts.

Gratuity shall be calculated as defined in Section 2(8)(s) of the Payment of Grauity Act, 1972 which provides wages to include basic + dearness allowance but not any other allowance or bonus etc. paid to the employee. 

Akhamadbhai (Admin Manager)     28 September 2023

Dear Sir,


In Graduity Calculation cosnider all allowance as per appointment letter ( Graduityon Gross salary) Please calulate as per attachment & my present gross salary Rs 600000/-

Attached File : 200659 20230928112527 20230927232520.pdf downloaded: 28 times

Pradipta Nath (Advocate)     28 September 2023

Last drwan basic + DA will be considered. Statutory provision always prevails.

Sudhir Kumar, Advocate (Advocate)     30 September 2023

are you sure you are underpaid?

Akhamadbhai (Admin Manager)     30 September 2023

yes sir


Sudhir Kumar, Advocate (Advocate)     01 October 2023

then move to court.

Dr. J C Vashista (Advocate and Legal Consultant)     01 October 2023

Originally posted by : Akhamadbhai

Dear Sir, As per appointment letter graduity shown in CTC including all aalownce + components (On Gross Total salary) which is already clearlymentioned in my appointment letter

Are you sure about the fact that the appointment letter contain the component of "Gratuity" and the gratuity include all allowances ?

Which PSU (your employer) it is ?

If so, you are one of luckiest employee in world, and it is an eye opener and breaking news 

Sudhir Kumar, Advocate (Advocate)     04 October 2023


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