I resigned from my company after working 12 years but my company is basing my final settlement only on the basic salary, which I feel is incorrect.
The breakup of salary was Basic Salary + Housing Allowance + Car Allowance + Miscellaneous. According to labor law, are they correct or do they have to calculate the indemnity according to the salary?

 Name withheld

Answer: Nowhere does the Labor Law say that the indemnity must be calculated on the basic salary. It uses the word ‘remuneration’ which has been defined by the same Labor Law as the basic salary plus all the allowances.
So your indemnity must also be calculated according to the ‘remuneration’ and not the basic salary.