Hi, can we decrease any employee's salary within a year without changing the designation? Please, can someone suggest a way for us to reduce their salary due to my calculation mistake.

Regards,
Noor Alam

From India, New Delhi
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Dear Noor, Arithmetic error in calculation of salary can be corrected at any time and the amount already paid can be recovered as over-payment.
From India, Salem
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Thank you so much for sharing the valuable information with me, sir. But how can we correct the PF amount which we already paid to the PF Department? As I am aware, the PF amount cannot be decreased as per the compliance. Please correct me if I am wrong.

Regards,
Noor Alam

From India, New Delhi
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The exercise you are undertaking is not a reduction of salary but only the correction of an inadvertent arithmetic error in the calculation. The amount of contribution paid to the EPF so far is only based on the wrong calculation. When you set it right now, automatically the contributions subsequent to the correction will be less. It is better to inform the employee and the EPFO in advance.
From India, Salem
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Respected sir,

Without reviewing the contents of the appointment letter and after our discussion about the calculation error, please take a moment to understand how it occurred, refer to the details in the appointment letter, and then determine whether it is accurate or not.

Truly yours,
Shashi Pandey

From India, Lucknow
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Dear Shashi,

Your contention is quite correct and appreciable. However, here at citeHR, the answers we provide are strictly based on the inputs given in the query. Since the poster has clearly stated that it was their miscalculation that necessitates corrective action, I believe it would be inappropriate to delve further into how the error occurred. If the situation is different from what you have suspected, my response would be of no assistance to them.

From India, Salem
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Dear Noor Alam,

Can we decrease any employee's salary?
Answer is "No."
But you can, provided if the employee is paid more than the actual salary promised in the appointment, is due to wrong calculation or clerical mistake. That is not called a decrease of salary but rather a recovery of the overpaid amount.

From India, Mumbai
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