Hi This is with reference to Gratuity. It is calculated as.... Last drawn Salary X 15/26 X No of years of service. Where last drawn is Basic + DA. I know the basic number but we do not have DA now - a - days but go for HRA. In this case, how to find the DA for companies that are covered in Shops and Establishment Act? As per a notification of Minimum Wages Act , I learnt that DA is Rs.899/-pm in Tamil Nadu . Is this DA amount correct? Regards Neelam
From India, Madras
From India, Madras
Hi Neelam, In India, Dearness allowance (D.A.) is part of a person's salary. D.A. is calculated as a percent of the basic salary. This amount is then added to the basic salary along with house rent allowance to get the total salary. Rates vary as per rural/urban areas etc.
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Hi N Neelam. DA is notified by State Labour Department Category wirse. If the pay slip does not reflects DA, it is not applicable to be paid along with gratuity, however you cannot go for HRA as it wlll substantially increase the Gratuity amount and is never done. Thanks, Dy Mgr Adm*IR
From India, New Delhi
From India, New Delhi
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc