Reducing a salary-impact on Government gratuity. | ExpatWoman.com
 

Reducing a salary-impact on Government gratuity.

397
Posts
EW EXPLORER
Latest post on 02 June 2013 - 12:51

Hi Ladies. Wondering if any of you can help me? I am aware of a company which is lowering salaries and increasing housing allowances to decrease the amount that they will have to pay individuals when they leave. Is this legal? This will significantly decrease the employees' government gratuity as many of them have been there for four years already. Where can I find correct, up to date info about this as soon as possible?

1575
Posts
EW EXPERT
Latest post on 02 June 2013 - 14:57
The basic salary can be no less than 50% of the package although most decent companies pay 60 % basic salary 40% allowances. The company cannot change this without the employee's consent as it amounts to an attempt to change fundamental T&Cs which both the employer and employee signed up to.
 
 

ON EXPATWOMAN TODAY