Senior Officer - Hr
Purchase Executive

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Hi Sir,
From September to February i have been getting my salary slip in which the basic pay was just 5000,previously its was 10000,when I consulted the HR manager , i got the following reply ("We have revised our salary slab from September 2014 as per new rule in PF. Before it was 80 % is credited as basic and as per govt rule it should be 40 %"),but my concern is because of the reduction in basic pay i may have to suffer a 50% loss in my want i want to know is , does the HR department have the right to alter the basic pay because of the raise in PF contribution.Should i question them or not.
Expecting your immediate response.

From India, undefined
If you are not worried about your take home salary, you can ask them to revise to previous basic.
If the basic is increased to Rs.10000/- you may loose Rs. 2400/- (Employee 12% and employer 12% of basic) from your ctc. Anyway it is a savings for you.
But gratuity is just 15 days basic salary for every year.
They are supposed to let you know while changing the salary structure.
There is no govt rule that Basic should be 40% of the ctc. But it should comply with Minimum wage prescribed by your state govt.

From India, Chennai
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