Can employer change the basic component of the salary?
For e.g. If my salary structure is defined like, basic is 50% of total gross salary for last 4 years. Can my company change it to 35% of the gross without my approval?
From India, Pune
For e.g. If my salary structure is defined like, basic is 50% of total gross salary for last 4 years. Can my company change it to 35% of the gross without my approval?
From India, Pune
604
Thanks borntosin and pon.
I discuss this with experts (C.A. and Lawyer) and conclude that it depends on company. If it is a Public ltd. then one can do something; but when it is a private ltd, there are no hope to fight except the offer letter (or last signed bond) has any details of salary structure.
Thanks & regards,
Sachin.
From India, Pune
I discuss this with experts (C.A. and Lawyer) and conclude that it depends on company. If it is a Public ltd. then one can do something; but when it is a private ltd, there are no hope to fight except the offer letter (or last signed bond) has any details of salary structure.
Thanks & regards,
Sachin.
From India, Pune
I do agree with Sachin it is absolutely depends on company policy. There is no statutory obligation in this regard.
actually higher basic is always very useful to employees for statutory obligations.
for example if Basic salary is higher side employees can get more HRA Exemption as per IT act while calculating of his tax liability.
P.F contributions depends on Basic Pay and Gratuity payment also depends on Basic salary.
Any way to conclude, this is absolutely depends on company policy.
From India, Hyderabad
actually higher basic is always very useful to employees for statutory obligations.
for example if Basic salary is higher side employees can get more HRA Exemption as per IT act while calculating of his tax liability.
P.F contributions depends on Basic Pay and Gratuity payment also depends on Basic salary.
Any way to conclude, this is absolutely depends on company policy.
From India, Hyderabad
Company not change in Basic Salary structure because Pf contribution increase time to time but not decrease
From India, Delhi
From India, Delhi
Hi,
I agree with Balwant. You cannot reduce the basic component as it would affect the PF contribution. As per Employees PF and Miscellaneous Act, employer cannot reduce the PF contribution, and hence basic cannot be reduced.
Regards,
Smita
I agree with Balwant. You cannot reduce the basic component as it would affect the PF contribution. As per Employees PF and Miscellaneous Act, employer cannot reduce the PF contribution, and hence basic cannot be reduced.
Regards,
Smita
Hi
I feel the Company can always change the basic and change the DA to make the PF contribution unaffected. But there are many allowances /benifits linked with basic which may change
Regards
Shrinivas
From India, Mumbai
I feel the Company can always change the basic and change the DA to make the PF contribution unaffected. But there are many allowances /benifits linked with basic which may change
Regards
Shrinivas
From India, Mumbai
Dear Sir
Mohan has worked for 8 year in a company .and his basis salary was rs 25000/- and after 6 years they reduced his basic salary up to 18000/- though his gross salary remained same.
now after 8 year mohan has resigned and smoothly given the hand over .
on which basis salary he will get his gratuity .
From India, Mumbai
Mohan has worked for 8 year in a company .and his basis salary was rs 25000/- and after 6 years they reduced his basic salary up to 18000/- though his gross salary remained same.
now after 8 year mohan has resigned and smoothly given the hand over .
on which basis salary he will get his gratuity .
From India, Mumbai
No legally employer cannot change the terms of service conditions offer letter/appointment letter contains the clause thereof is the terms of employment agreed by both the employer and employee if once offer letter has been signed by agreed both employer and employee Then later No changes can be made unless the mutual consent of employee & employer subjected to section 9A of ID act. However as per this section changes in form of effectness to workers either changs such as working shift or working timing or change in service conditions the Notice thereof atleast 21 days shall be given to every workers before any change.
Pls refer :- T RAJAMANICKAM V/S BINNY LIMITED wherein Hon'ble Madras High court held that reduction in the emolument of a workers which was Not envisaged in the settlement between Management and the workers and was done without the Notice was Ex facia against sec 9A of ID act.
Therefore No changes can be made unless The Notice Given to workers or Without mutual concent of employee?
Thanks & Regards
V Shakya
HR & Labour Law Advisor
From India, Agra
Pls refer :- T RAJAMANICKAM V/S BINNY LIMITED wherein Hon'ble Madras High court held that reduction in the emolument of a workers which was Not envisaged in the settlement between Management and the workers and was done without the Notice was Ex facia against sec 9A of ID act.
Therefore No changes can be made unless The Notice Given to workers or Without mutual concent of employee?
Thanks & Regards
V Shakya
HR & Labour Law Advisor
From India, Agra
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Pf name & dob change letter format.doc