ranjit0101
3

Dear friends,I am little confused about salary structure of my company. We are paying every employee more than the minimum wages, keeping basic salary as minimum wages and balance amount as other allowances such as HRA, Conveyance. Problem arises when minimum wages of revised as per State Governments. We do not increase the salary, only change component of salary i.e. from HRA to basic or Conveyance to Basic or LTA to basic. Please anyone suggest me, we are doing the wrong or not.ThanksRanjit9818758445
From India, Delhi
R.N.Khola
363

Dear Ranjit,
In my opinion you are going on wrong path. This type of change attracts section 9A of the Industrial Disputes Act, 1947.This type of change is considered to be included in the matters as given under the Fourth Schedule which warrants 21 days of notice before affecting such type of change to be served upon the effected employees.
Suggestion given as requested.
Regards,
R.N.Khola


From India, Delhi
ranjit0101
3

Dear Mr. Khola,
In one point I agree with you, but there is not any kind of Pay structure, where all the components are connected to basic salary. So, please guide me, is there any guideline as per payment of wages act or other acts.
Thanks
Ranjit

From India, Delhi
R.N.Khola
363

Dear Ranjit,
Which is the one point on which you are agree with me ? You in your original post have submitted that your are taking the amount from HRA head etc & adjust it with the Basic to come to minimum wages rate. To increase salary in any head of account is not objectionable but to decrease the amount in any other head is contrary to law.If the employed person is entitled to have relief under the Payment of wages Act, 1936 then in my opinion no deductions from the wages fixed by the employer is permissible except given under section 7.
Regards,
R.N.Khola


From India, Delhi
shah81
HEllo All,
In my organisation Minimum gross salary is 5000 (Basic4724+HRA 236+ Other 40 comes to gross 5000)since change in wages my Basic will come 5400 and gross will hike up.
IS there any solution where i didn't change the pattern of break up whenever such changes happen from GOV.
Actuallly we have recuited 10 trainees this month with 5000 gross salary per month and I have to now change their gross to 6000 without evaluting perfomance.
Regards,
shah81

From India, Vashi
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