Dear All My self dehulkumar tillu & working with pharmaceuticals industries since last 4.5 Year. Every year we had done increment at our company. This time also our HR persons do the same but this time they reduced our Basic Salary from 50% to 40%. Is this valid? Basic Salary Can be reduced as per rules?
We do not want to reduced our basic salary. Kindly give a strong rules example or if law / act is their.
Thank You.
From India, New Delhi
We do not want to reduced our basic salary. Kindly give a strong rules example or if law / act is their.
Thank You.
From India, New Delhi
Dear Dehulkumar ji, No employer can reduce basis salary and or gross salary. It is illegal.
From India, Mumbai
2556From India, Mumbai
Act only states that the Basic should not be less than the Minimum Wage and any statutory affecting Basic is forbidden. Kindly check with your HR the reason for reduction in Basic. As rightly mentioned by Mr. Keshav it is unethical
From India, Ahmadabad
From India, Ahmadabad
The basic should not be less than the minimum wage fixed by State/Central Authorities. There are instances where Dearness Allowance/Living Allowances are attached to Basic and in such case reducing the basic is a loss the employee. If the changed basic is above minimum wage and total receipts are in tact, then there is no damage. First study the implications of the change. One should not disturb the pay package. They have to educate the employees. Some times it is to avoid payment of taxes to the Exchequer, such as income tax, professional tax etc..I advice pl. check up with HR.
From India, Nellore
From India, Nellore
@ Dehul Tillu,
I suggest you to look @ the increment hike rather then looking @ basic hike. As Basic is just a component of your whole salary structure. Ultimately the more salary coming to your pocket matters.
I am also agree with comments of Mr. Aditya that reducing Basic will give you more benefits in Income Tax.
From India, Ahmedabad
I suggest you to look @ the increment hike rather then looking @ basic hike. As Basic is just a component of your whole salary structure. Ultimately the more salary coming to your pocket matters.
I am also agree with comments of Mr. Aditya that reducing Basic will give you more benefits in Income Tax.
From India, Ahmedabad
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Salary-Note.doc
SALARY SHEET CALCULATION.xls