Gratuity salary computation

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2 Points Posted on 28 May 2021
those notcovered under pg act what all items included in salary computation basic pay DA commission. If bonus given will it be included?
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On 28 May 2021 at 19:02 Report
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This discussion clarifies how gratuity salary is calculated for employees not under the PG Act. It details that basic pay, DA (if part of retirement benefits), and a fixed percentage of commission on turnover are included in the salary computation. Importantly, bonus payments are explicitly excluded from this calculation.

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Chartered Accountant
24588 Points Posted on 28 May 2021
No bonus cannot be included in calculation of gratuity
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On 28 May 2021 at 19:23
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132 Points Posted on 02 June 2021
In computation of amount of gratuity under sec10(10)iii, least of following shall be exempt
1.prescribed limit -2000000
2.amount received as gratuity
3.1/2×average monthly salary×completed year of service
For this purpose salary means basic+DA(if form part of retirement)+fixed% of commission on turnover.
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On 02 June 2021 at 09:12
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CMA
13117 Points Posted on 02 June 2021
Bonus is not part of salary for computation of gratuity
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On 02 June 2021 at 13:10

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