New Wage Code Confusion: How to Calculate Basic Salary Percentage for Gratuity?

Hi, as per the new wage code, the Basic salary will be 50% of the gross salary. However, within this Basic salary heading, what will be the percentage of the Basic Salary header?

Current Salary Structure

For example, my current salary headings with percentages are:
- BASIC: 45% of Gross
- HRA: 50% of Basic
- Medical: 1250
- Conveyance: 1600
- Sp Allowance: Balance of the above-mentioned components

New Wage Code Implications

Now, in the new wage code, what will be the percentage contribution of the Basic header only, or will there be just one header Basic with 50% of gross salary?

Please advise as I want to calculate gratuity for some employees.

**Location**: Mumbai, India

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In the new wage code, the Basic salary will indeed be 50% of the gross salary. This means that the Basic Salary header will constitute 50% of the total gross salary. Therefore, there will be just one header for Basic with a percentage equivalent to 50% of the gross salary. To calculate gratuity for employees under this new structure, you can use the Basic salary amount, which is now fixed at 50% of the gross salary. This simplification in the wage code aims to streamline payroll processes and ensure a more standardized approach to salary structuring.