Dear All,
I am working with a Auto Mobile Industry as a HR Manager, I am coming accross a problem to reduce basic salary of old employees, whose basic salary is above 60 % to 80 % of total CTC. Now Management wants that their basic salary must be reduced to 40% of total CTC in such a manner that their past loss (Gratuity + Leave encasement) and future losses (Gratuity + Leave encasement) can be compensated in restructuring the CTC.
please help me out and give me best suggestions.
Regards
Ram
From India, New Delhi
1I am working with a Auto Mobile Industry as a HR Manager, I am coming accross a problem to reduce basic salary of old employees, whose basic salary is above 60 % to 80 % of total CTC. Now Management wants that their basic salary must be reduced to 40% of total CTC in such a manner that their past loss (Gratuity + Leave encasement) and future losses (Gratuity + Leave encasement) can be compensated in restructuring the CTC.
please help me out and give me best suggestions.
Regards
Ram
From India, New Delhi
you must have deducted PF too basis their current Basic salary and now if you reduce the basic pay - it would effect the PF too which is according to me is not permissible.
Would suggest you to check from this point of view too besides effecting the loss on account of their Gratuity and Leave encashment.
From India, Gurgaon
Would suggest you to check from this point of view too besides effecting the loss on account of their Gratuity and Leave encashment.
From India, Gurgaon
AS per Act, we can increase the Basic salary, but on account we can't reduce the Basic Salary, which is Non Compliance.
Please get in touch with legal consultant's & take their opinion on the same.
Regards,
Vinod Kumar
FSL
From India, Bangalore
Please get in touch with legal consultant's & take their opinion on the same.
Regards,
Vinod Kumar
FSL
From India, Bangalore
It will not affect the PF if it is above the slab ie:6500 but it will affect below Rs.6500 cadre and gratuity of all employees
in future you are the answerable person to PF Officials and the employee also.
I would suggest the Basis Pay can reduce above Rs.6500 cadre but you have to convince your employee for the gratuity amt.
Regards
Sintralla
From India, Madras
in future you are the answerable person to PF Officials and the employee also.
I would suggest the Basis Pay can reduce above Rs.6500 cadre but you have to convince your employee for the gratuity amt.
Regards
Sintralla
From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Basic-communica tion-skills_198 .ppt
Basic Accounting Tutorial.doc
Basic Attrition Analysis.xls