Dear All,

In a NGO/company employees under same grade are supposed to get the same salary benefits and for those who have been in the same grade for a couple of years their increment gets added to a separate component but by mistake the increment amount has been distributed in all components and the basic, hra, pf all got changed. Now reworked and redistributed accordingly but employees feel they are at a loss as their basic has decreased along side pf contribution .

Whether the process is right or wrong. can any one/ law experts how some light on it

Thanks
usha

From India, Noida
Hi,

After increment before processing the salary if you have the revised the components then there won't be any problem. But after increment if salary is processed for couple of months and now if you are planning to restructure the components including reducing the basic then it will be right. You cannot reduce the basic once PF contribution is made once.

Adding whole increment to a separate component is also strange. Actually it should be bifurcated in all components of salary.

From India, Madras
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