I had changed my job role and company in 2002. My salary was reduced by a significant extent. Also, the basic salary was decreased by almost 50 percent. I wanted the job because it was in the area of my liking. Secondly, I had left my existing job before I could secure a new job and stayed out of work for 6 months.
Can you explain if the salary reduction was legal? This reduction continued later, and a few increments were not given to me.
From India, Ashta
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3Can you explain if the salary reduction was legal? This reduction continued later, and a few increments were not given to me.
From India, Ashta
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Leaving the existing job for whatever reason is an individual's discretion. Similarly, after some gap, accepting a job in a place of his/her liking is the individual's choice.
Therefore, such a choice should have been exercised only after verifying matters like the new organization's profile, future prospects such as promotional avenues, initial compensation package, increments, fringe benefits, etc. How can the poster complain about a reduced salary compared to that of his/her previous job after accepting the offer and joining? Does he mean to convey that nothing was offered, or that the actual salary is less than the offer?
From India, Salem
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Therefore, such a choice should have been exercised only after verifying matters like the new organization's profile, future prospects such as promotional avenues, initial compensation package, increments, fringe benefits, etc. How can the poster complain about a reduced salary compared to that of his/her previous job after accepting the offer and joining? Does he mean to convey that nothing was offered, or that the actual salary is less than the offer?
From India, Salem
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Thanks, Mr. Umakanthan. I appreciate your quick response. Many people lack knowledge about these aspects. This was common, especially during the first few job changes in the past few decades when things were not online, and a person's knowledge was limited to their field of expertise.
The question was for the sake of knowledge since, after many years, we won't go back and change things. Additionally, people often fail to understand the significance of reducing the basics to half and compensating with other benefits to maintain a similar compensation structure.
I am not an HR expert, but I noticed and discussed these details after a long time when someone pointed out the difference.
From India, Ashta
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The question was for the sake of knowledge since, after many years, we won't go back and change things. Additionally, people often fail to understand the significance of reducing the basics to half and compensating with other benefits to maintain a similar compensation structure.
I am not an HR expert, but I noticed and discussed these details after a long time when someone pointed out the difference.
From India, Ashta
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Dear friend,
Appreciate your quick and positive response. Let me address your queries directly:
1) The compensation package would have been conveyed to you in the offer letter, possibly in CTC format. After accepting the offer and assuming the position, you cannot object to any changes in the salary structure compared to your previous job's pay structure.
2) Basic pay is the most crucial component in a salary structure, as all other indirect monetary benefits are typically calculated based on the basic pay. For instance, in the event of employment termination, terminal benefits such as gratuity may vary depending on the last drawn basic pay.
3) Nowadays, most employers determine employee compensation using the CTC method, which can be confusing for job seekers and requires both insight and foresight to interpret.
Let me know if you need any further clarification or assistance.
From India, Salem
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Appreciate your quick and positive response. Let me address your queries directly:
1) The compensation package would have been conveyed to you in the offer letter, possibly in CTC format. After accepting the offer and assuming the position, you cannot object to any changes in the salary structure compared to your previous job's pay structure.
2) Basic pay is the most crucial component in a salary structure, as all other indirect monetary benefits are typically calculated based on the basic pay. For instance, in the event of employment termination, terminal benefits such as gratuity may vary depending on the last drawn basic pay.
3) Nowadays, most employers determine employee compensation using the CTC method, which can be confusing for job seekers and requires both insight and foresight to interpret.
Let me know if you need any further clarification or assistance.
From India, Salem
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I would like to add something more here. Many managers learned from college or their seniors, and they themselves do not have any exposure or ideas to lead. They work based on their experience and knowledge that could have been useful in past centuries. Unfortunately, the same people are sitting in positions of deciding the compensation, and they screw up the candidates' future and life by cutting down the compensation. Not only do they have to survive on half salary, give up their pension and other benefits, but they also end up with some idiots who will teach them things that they had come to change. What a pity. The government thinks they are doing a great job by exploiting them and letting some idiots in government do it. This is a very unfortunate situation. If a person thinks they have the abilities for a better job, they should be given proper compensation and opportunities to let them make their dreams come true. That is the reason they are working in the private sector and not in a government job. Unfortunately, people are not trained to tell their managers and teachers that they are outdated and no longer useful.
From India, Ashta
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From India, Ashta
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Dear disturbed colleague,
Generally, people change jobs, inter alia, for better compensation and benefits. Just as offering a lower salary/basic than previously earned by any organization is in bad taste (legality is debatable), similarly, your complaining about it after knowing it fully well and accepting it before joining reflects fault on your part as well. I share the views expressed by Mr. Umakanthan.
I think your generalized observations about seniors not knowing anything and following an old-fashioned style of managing are uncalled for in this context.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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Generally, people change jobs, inter alia, for better compensation and benefits. Just as offering a lower salary/basic than previously earned by any organization is in bad taste (legality is debatable), similarly, your complaining about it after knowing it fully well and accepting it before joining reflects fault on your part as well. I share the views expressed by Mr. Umakanthan.
I think your generalized observations about seniors not knowing anything and following an old-fashioned style of managing are uncalled for in this context.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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