Dear members,
This query is related to basic component in the CTC structure. Recently as per PF commissioner guidelines from Mumbai our company has made it mandatory for all employees to be covered under PF. Earlier company has increased basic of employees who were not willing to be part of PF. Their basic was kept as INR 15100/- or more. This basic was same for the last 2 year. But recently when company was instructed to cover all employees under PF they reduced basic of all employees to 30% of CTC or minimum wages as Basic. Now our basic salary is reduced to around Rs 9000/- per month though our CTC has remained same. In our CTC structure gratuity and bonus is shown as part of CTC and calculated on basis on Basic salary. This has resulted in decrease in amount of gratuity of employees who have completed 5 years or more.
Is it legal to reduce Basic salary during course of employment ?
From India, Madras
This query is related to basic component in the CTC structure. Recently as per PF commissioner guidelines from Mumbai our company has made it mandatory for all employees to be covered under PF. Earlier company has increased basic of employees who were not willing to be part of PF. Their basic was kept as INR 15100/- or more. This basic was same for the last 2 year. But recently when company was instructed to cover all employees under PF they reduced basic of all employees to 30% of CTC or minimum wages as Basic. Now our basic salary is reduced to around Rs 9000/- per month though our CTC has remained same. In our CTC structure gratuity and bonus is shown as part of CTC and calculated on basis on Basic salary. This has resulted in decrease in amount of gratuity of employees who have completed 5 years or more.
Is it legal to reduce Basic salary during course of employment ?
From India, Madras
Hello, as I know employers cannot unilaterally reduce an employee's basic salary during the course of employment without the consent of the employee. The basic salary is typically outlined in the employment contract or agreement, and any changes to it would require the mutual agreement of both parties involved.
If your company has reduced the basic salary of employees without their consent, it may potentially be a violation of employment laws. However, it is crucial to review the terms of your employment contract, any applicable collective bargaining agreements (geometry dash scratch), and the specific labor laws of your jurisdiction to determine the legality of such a change.
In some cases, an employer may be able to change the salary structure or components of the compensation package, but certain legal requirements must be met, such as providing notice and obtaining the agreement of the employees affected. It is also important to ensure that any changes comply with minimum wage laws and other applicable regulations.
From Kazakhstan, Shymkent
If your company has reduced the basic salary of employees without their consent, it may potentially be a violation of employment laws. However, it is crucial to review the terms of your employment contract, any applicable collective bargaining agreements (geometry dash scratch), and the specific labor laws of your jurisdiction to determine the legality of such a change.
In some cases, an employer may be able to change the salary structure or components of the compensation package, but certain legal requirements must be met, such as providing notice and obtaining the agreement of the employees affected. It is also important to ensure that any changes comply with minimum wage laws and other applicable regulations.
From Kazakhstan, Shymkent
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