Dear Friends,
Please clarify on gratuity calculation.
Some say to calculate on Basic. Some say to Calculate on Basic + DA.
The P.F deducted was fixed as Rs.650/-.
Is there any govt. notification on calculation part.
It is urgent. Please help.
From India, Mumbai
Please clarify on gratuity calculation.
Some say to calculate on Basic. Some say to Calculate on Basic + DA.
The P.F deducted was fixed as Rs.650/-.
Is there any govt. notification on calculation part.
It is urgent. Please help.
From India, Mumbai
Gratuity will be calculated on Basic + DA. The statutory contribution on PF is restricted on a salary of Rs. 6500. But as per the option of employer and employee the contribution can be paid on actual salary.
Abbas.P.S
From India, Bangalore
517Abbas.P.S
From India, Bangalore
Dear Mr.Abbas,
I have found this answer in lawersclubindia com forum. Can you please clarify the same.
mr Sanadeep
I have also recd the gratuity on the basic pay itself .
As your PF deductions also on the basic salary only DA is not included .
If PF deductions are INCLUSIVE OF DA THEN ONLY GRATUAITY WILL ALSO BE ON THE BASIS OF INCLUSIVE OF DA .
As DA is not included while making contribution of PF then DA is also eclusive of gratuaity calculation .
regards.
T.KRISHNA RAO
From India, Mumbai
I have found this answer in lawersclubindia com forum. Can you please clarify the same.
mr Sanadeep
I have also recd the gratuity on the basic pay itself .
As your PF deductions also on the basic salary only DA is not included .
If PF deductions are INCLUSIVE OF DA THEN ONLY GRATUAITY WILL ALSO BE ON THE BASIS OF INCLUSIVE OF DA .
As DA is not included while making contribution of PF then DA is also eclusive of gratuaity calculation .
regards.
T.KRISHNA RAO
From India, Mumbai
For PF also DA should be included. In any Forum that publish public response/opinion, there can be errors. Abbas.P.S
From India, Bangalore
From India, Bangalore
Hi Abbas and Friends,
In the whoe act of Gratuity the term used is Basic Salary i.e. basic only, while we go through PF act the term used is (Basic +DA+RA)
so my openion calculationof gratuity is to be done on basic salary only.
Invite the suggestion of more friends to clear the confusion.
From India, Mumbai
In the whoe act of Gratuity the term used is Basic Salary i.e. basic only, while we go through PF act the term used is (Basic +DA+RA)
so my openion calculationof gratuity is to be done on basic salary only.
Invite the suggestion of more friends to clear the confusion.
From India, Mumbai
Kindly go through the Section 2(s) of the Payment of Gratuity Act, 1972.
"Wages shall consist of basic plus D.A, as per last drawn salary. However, allowances like bonus, commission, HRA, overtime etc. are not to be considered for calculations. [Section 2(s)]."
Abbas.P.S
From India, Bangalore
"Wages shall consist of basic plus D.A, as per last drawn salary. However, allowances like bonus, commission, HRA, overtime etc. are not to be considered for calculations. [Section 2(s)]."
Abbas.P.S
From India, Bangalore
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Gratuity calculation.doc
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