Q: End of service gratuity calculation, the paid leave amount consists of basic pay only. Shouldn't the HRA be part of paid leave amount as well in addition to basic pay? A: End of service gratuity is calculated only on the basis of the basic salary, while the leave is calculated on the full salary…

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What is included in the computation of the end of service gratuity?

HI.

I have recently resigned from my organization. What I want to know is that in the end of service gratuity calculation, the paid leave amount consists of basic pay only.

Shouldn't the HRA be part of paid leave amount as well in addition to basic pay?

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Raluca Gatina

Elnaggar & Partners

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9 Aug 2021, 11:37

Dear Questioner,

The end of service gratuity is calculated only on the basis of the basic salary, while the leave is calculated on the full salary (basic + allowances).

Best Regards,

Raluca Gatina.

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