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AAFM CWM_LEVEL_2 Exam - Topic 7 Question 115 Discussion

Section B (2 Mark)For calculation of liability of payment of gratuity to an employee on leaving service, the wage to be taken into account is
C) Last drawn wage
A) Average wage earned during the entire service
B) Average wage earned during the last 5 years
D) None of the above

AAFM CWM_LEVEL_2 Exam - Topic 7 Question 115 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 115
Topic #: 7
[All CWM_LEVEL_2 Questions]

Section B (2 Mark)

For calculation of liability of payment of gratuity to an employee on leaving service, the wage to be taken into account is

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Suggested Answer: C

by Nichelle at May 07, 2026, 08:49 AM

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Annice
3 days ago
I think it's C) Last drawn wage.
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Cecil
9 days ago
I think B could help balance out fluctuations in pay.
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Stevie
14 days ago
C is more practical for current employees.
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Carmelina
19 days ago
I’m leaning towards A. It considers the whole period.
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Graham
24 days ago
C is definitely the most straightforward option.
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Lorrine
29 days ago
I feel like B) Average of last 5 years is fair too.
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Stephen
1 month ago
But what about A) Average wage during service?
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Francesco
1 month ago
I agree, last drawn wage makes sense.
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Dong
1 month ago
I think it's C) Last drawn wage.
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Georgiann
2 months ago
I always thought it was B) Average wage for the last 5 years!
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Amira
2 months ago
Wait, are we sure about that? Seems a bit off to me.
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Brandon
2 months ago
Actually, it's A) Average wage earned during the entire service.
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Gerald
2 months ago
Definitely agree with John, that's what I've heard too!
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Lili
2 months ago
I think it's C) Last drawn wage.
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Jules
3 months ago
I’m leaning towards the last drawn wage, but I could be mixing it up with another topic we covered.
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Erick
4 months ago
I feel like it might be the average wage during the entire service, but that seems a bit off.
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Tamra
4 months ago
I remember practicing a similar question, and I think it was about the average wage over the last few years.
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Osvaldo
4 months ago
I think the last drawn wage is usually what they consider for gratuity, but I'm not entirely sure.
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