Da rate for calculation of gratuity

Himadri Shekhar Bhattacharjee (Querist) 10 May 2013 This query is : Resolved
Suppose, an employee is on suspension wef 12th Aug2010 till date and he gets compulsory retirement on 10.05.2013. Now, in calculation of his gratuity. Now, as per payment of gratuity act 1972, as amended till date, DA at what rate will be taken into account, rate prevailing as on 12-08-2010, ie on the date of suspension or as on 10-05-2013 ie the date of getting the CRS?

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Rajendra K Goyal (Expert) 10 May 2013
Seems to be an Academic quarry;
The Gratuity Act section 4 reads as under:

Section 4: Payment of gratuity

(2) For every completed year of service or part thereof in excess of six months, the
employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned

Guest (Expert) 10 May 2013
DA would be taken as on full rate of pay as would have been admissible on the date of compulsory retirement, as if the employee would not have been suspended.

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