n NISM Certifications
X NISM Series X
Medium

Under the Payment of Gratuity Act, 'last salary drawn' includes:

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Basic salary, Dearness allowance, and Leave travel allowance

  2. Basic salary, Dearness allowance, and Commission on sales

    Correct answer

  3. C

    Basic salary, Dearness allowance, and House rent allowance

  4. D

    Cost to the Company

Why this is the answer

The Act defines 'last salary drawn' as including basic pay, dearness allowance, and commissions based on sales, but not allowances like HRA.

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