Hi all, I would like a little more information about basic salary and ex-gratia. I have been working in an organization for the last 7 years. The employer is not increasing my basic salary, which is affecting my HRA and PF. Instead of increasing the basic salary, they are raising other allowances and providing ex-gratia. We have requested an increase in our basic salary instead of ex-gratia. My HR department says that we have to maintain the salary structure as per government norms. Currently, my gross salary is 26,000.00, my basic salary is 7,000.00, and my ex-gratia is also 26,000.00.
Could someone please advise on how to approach my HR and employer to increase the basic salary instead of ex-gratia?
Thank you.
Regards, Kumarvkk
From India, Hyderabad
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Could someone please advise on how to approach my HR and employer to increase the basic salary instead of ex-gratia?
Thank you.
Regards, Kumarvkk
From India, Hyderabad
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Understanding Ex-Gratia and Basic Salary
Ex-Gratia is an amount given after the completion of your employment with the organization, and it is not bound by any legal obligation. When the employer is not obligated to pay a bonus, they may decide to give Ex-Gratia.
If they are increasing only allowances except for the basic salary, then it will be considered in the PF audit. There is no law to increase or decrease the basic salary, but it should be more than the Minimum Wages of the respective State.
Regards,
From India, Mumbai
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429Ex-Gratia is an amount given after the completion of your employment with the organization, and it is not bound by any legal obligation. When the employer is not obligated to pay a bonus, they may decide to give Ex-Gratia.
If they are increasing only allowances except for the basic salary, then it will be considered in the PF audit. There is no law to increase or decrease the basic salary, but it should be more than the Minimum Wages of the respective State.
Regards,
From India, Mumbai
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Creating a Competitive Salary Structure.doc
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