Restructuring Of Compensation For Employees

Dear All,
This has been a wonderful site for problem resolution in areas of HR and I appreciate the help rendered by the HR professionals.
I do have a query regarding restructuring of the compensation in the organization. We are in the process of redefining the basic pay and allowances and defining a fixed part of total CTC. Given the current structure, the basic for many of the employees will reduce. Now during calculation of gratuity the employee will have a reduced basic in the current year compared to the year before. So how will the calculation take place?
Regards,
Pratima

The gratuity calculation is made on the last drawn basic +DA so that calculation shall be made on the latest basic pay plus DA being paid to the employee.

Thanks a lot Avika for the response. I was hoping for a different method so that i could convince my employees :)..
Lets see if i can figure this out.
Thanks again.
Regards,
Pratima

Hi Pratima,
we are a HR Staffing consultant having a good team of Chartered Accountants..where we structure the payroll and compliance part in a way to reduce the income tax for employer, providing adequate facilities to employees and meeting the legal compliance so as to reduce penalties, providing consultation on various other HR solutions...
you may contact me at 011-47620000
Warm Regards
Reena Vashisht
Sr. HR Associate