Reduction in HRA+Conveyance+medical allowance to meet the Net Earning as before? - CiteHR
Korgaonkar K A
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3290ASHU
Hr Management

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I would like to know, my company wants to changes in employee's minimum basic wages as per Minimum wages ACT on 01.01.2018 but does not want any changes in net salary. So, is it possible to reduce their HRA or Conveyance or medical or other variable to meet the Net Earning as before?
Dear 3290ASHU,
There are changes in the conditions of service in respect of matters specified in the Fourth Schedule of ID Act. Therefore, your employer is liable to give 21 days notice of change under section 9A of ID Act, to effect such changes.
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Dear Colleague,
Please clarify your intentions of doing this. Are your current total wages inclusive of all allowances stated by you more than Minimum wages prescribed? In that case,where is the need for reshuffling the wage components?
Regards,
Vinayak. Nagarkar
HR- Consultant

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