Questions & Answers
Calculation of the gratuity after reducing salary for COVID-19
I am working in a company now for 11 months and 17 days. My company is offering me a 50% salary cut due to COVID-19.
If I accept, how will my gratuity and leave salary be calculated?
My basic is 4500 till now. And as per new contract, it is 2500.
Confused. Please help.
Hello.
If the salary reduction is temporary, it is best if the new contract states that your end of service is calculated on the basis of your initial salary.
If it is a permanent salary reduction, your end of service will most likely be calculated on the basis of the new contract.
For more options moving forward, feel free to contact my firm at our email. Alternatively, you can tune in to my legal podcast, Lawgical with LYLAW.
In my podcast, I provide insights and updates on legal matters in the UAE.
