## What is 'Salary' for Various Computations?
The definition of 'Salary' varies across different computations under the Salary head. Memorize this table.
| Purpose | 'Salary' Definition |
|---|---|
| HRA Exemption | Basic + DA (forming part of retirement benefits) + Commission (as % of turnover) |
| Entertainment Allowance | Basic Salary only |
| Gratuity — Covered by Payment of Gratuity Act | Last drawn Basic + DA (both — whether forming part of retirement benefits or not) [1 month] |
| Gratuity — Not Covered by POGA | Basic + DA (forming part of retirement benefits) + Commission (as % of turnover) — Average of preceding 10 months from month of retirement |
| Leave Salary (encashment on retirement) | Basic + DA (forming part) + Commission (% turnover) — Average of preceding 10 months from date of retirement |
| VRS Compensation | Basic + DA (forming part) + Commission (% turnover) |
| Employer Contribution to RPF (12% limit) | Basic + DA (forming part) + Commission (% turnover) |
| Rent-Free Accommodation (RFA) | All taxable salary EXCEPT: Arrears/Advance, Normal DA, Retirement Benefits, PF, Perquisites |
### Key Distinctions
- 'DA forming part of retirement benefits' is also written as 'DA (if)' — i.e., DA is included only if it counts for retirement benefits.
- 'CT' = Commission as a percentage of Turnover (not flat / fixed commission).
- POGA gratuity uses last drawn salary (Basic + full DA); Non-POGA uses average of preceding 10 months.
- RFA uses the widest base but specifically excludes the listed items.