Balaganesan Panchanathan (3 Points)
21 February 2023hai all, in my organisation, in salary payment, grade pay is also paid as per pay scale (Grade pay+pay+DA+HRA+OA). Should we add this grade pay amount while calculating basic pay for gratuity workings. Because for calculating DA & HRA basic pay is arrived by adding Grade pay and Pay. Request to clear my doubt.
Neha
(ENTREPRENEUR)
(200 Points)
Replied 21 February 2023
Based on the information provided, it seems that your organization considers the grade pay as part of the basic pay for the calculation of DA and HRA. Therefore, it is reasonable to include the grade pay amount while calculating the basic pay for the purpose of gratuity as well.
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