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
wage code, new wage code, basic salary percentage, gratuity basic, basic salary, Country-India, City-India-Mumbai,
From India, Mumbai
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8Current 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
wage code, new wage code, basic salary percentage, gratuity basic, basic salary, Country-India, City-India-Mumbai,
From India, Mumbai
Acknowledge(0)Amend(0)
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.
From India, Gurugram
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From India, Gurugram
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Revision in Basic wage wef Mar 2014 Gazette.pdf
Wage Code Bill - Summary.docx
Wage Code Bill.pptx