Gratuity exemption if covered by gratuity act

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Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2013 IF A EMPLOYEE RETIRES ON 31 DEC WHAT WILL BE THE LAST DRAWN SALARY

CA Pallav Singhania

CA Pallav Singhania (Expert)
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08 September 2013 last drawn salary will be counted from Feb to Nov..
10 months salary prior from retirement date...

The month of retirement shall be excluded..

If You are covered Under the Payment of Gratuity Act, 1971:

Gratuity shall be calculated as per the below formula:

Gratuity = Last drawn salary x 15/26 x No. of years of service.

Your last drawn salary will comprise your basic + DA.

For computation of gratuity, your service period will be rounded off to the nearest full year.

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Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2013 last drawn salry meaning u mentioned in the formula

CA Pallav Singhania

CA Pallav Singhania (Expert)
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08 September 2013 Yes,
Your last drawn salary will comprise your basic + DA.

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2013 what will be the month sir of lastdrawn salary nov or dec.if he retire on 31 dec

CA Pallav Singhania

CA Pallav Singhania (Expert)
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08 September 2013
Your last drawn salary will be the salary of Nov..

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2013 thank u sir very kind of u,please tell if increment take place on dec 1 and retires on 31st dec then too we will take nov salary as last drawn salary

CA Pallav Singhania

CA Pallav Singhania (Expert)
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08 September 2013 Yes, Salary of prior month from retirement date...

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2013 thanks sir

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