Our company doesn't have a salary structure yet. The salary is paid only on the head gross salary . In this case whether the gratuity is paid on the whole salary or shall we split some percentage of gross salary as Basic+ da for gratuity calculation and is it legal
Help me friends plzzzzz
As long as you do not have the salary structure broken up into Basic + DA (this must be greater than the minimum wages as per respective act) and other allowances it is implied that for all practical purposes the wage is the consolidated wage you are giving month on month. So Gratuity will be on the Gross salary only.
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