Special Allowance Is 105% More Than Basic Pay

I am in comp A. I got a new offer from a company B, where B offers me just 5% hike in basic salary, whereas Special allowance is 105% hike. I somehow have a strong feeling this is a trap. But my annual CTC overall has a good hike though. Can someone advice how safe it is to accept this offer from B?

Hello hanumanr,
Suggest first check out about the Company B from the Credibility angle. If you can, try to to meet some employees AND ex-employees--and check out on how they treat employees & about their basic nature--intangible factors basically. The inputs you get from this exercise would lead you to a more accurate response from your end.
In principle, you MAY be right with you feeling--but unless you mention 'why would they like to trap you', at least from your perspective, it would be tough to take a call on this aspect.
All the Best.
Rgds,
TS

Hello Mr.Hanumanr
If the special Allowance is higher than basic salary , it is to your disadvantage that your gratuity will get tumbled in as much as the special callowness is considered as salary for the purpose of calculation of gratuity . On the contrary if it is called DA , then it will become part of salary ( basic Plus DA) entitling you to have the gratuity calculated on a sum( salary) comprising of Basic salary and DA.
In fact the fixation of special allownace in such huge proportion ( higher than Basic salary) is act of camouflage and subterfuge circumvent laws and deprive the employee of his gratuity and other statutory and other benefits linked basic salary
Senprithvib6