Allowances, besides the transport allowance are added to the baisc salary for calculating indemnity
What other allowances, besides the transport allowance are added to the baisc salary for calculating:
1) End of service benefits and
2) Leave salary: Our company pays to employees (i) Living Allowance (ii) Housing Allowance (iii) Transport Allowance.
Can the company leave out the allowances and calculate only on the basic salary?
Name withheld
Answer: According to the Labor Law, and not according to what the companies are practicing, all allowances which are paid regular must be included in calculation of the indemnity. But for calculation of the leave salary, only the housing allowance must be included in the basic salary.