Industrial Relations And Labour Laws
Pan Singh Dangwal
Joint Manager
+1 Other

PRIME SPONSOR - FACTOHR - Customised Payroll, GPS Enabled Attendance, Travel, Performance Management, HRMS. Explore Features
Can we reduced basic salary please clarify me . If any act or notification for this matter please share me.
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
No, you cannot reduce the basic salary. All the Acts which speak about wages and contributions towards statutory Funds like EPF, ESI or relating to payment of gratuity or bonus restrict per se the act of reducing the basic wages which is considered to be the wages for survival of the employees.
Dear Mr Madhu T.K.,
You have been providing valued suggestions on basis of applicable law and acts.
I have a query, if any employer paying Basic Wages as per the MW Notification and due to some reason the Govt. itself reduce the Basic Wages. In such case can be also reduce the same for calculation of PF, ESI, Bonus and Gratuity.
Pls refer to my earlier discussion on the matter and suggest the best.
Thanks n advance,
In such cases the salary itself is reduced and this applies not only to a particular establishment but to all establishment to which the minimum wages notification applies. Then there will not be any issue in reducing the basic wages. What is not allowed is to reduce the basic wages in order to reduce the burden of paying certain contributions and payments by the employer.
PRIME SPONSOR - TALENTEDGE "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA. View Courses
Add Reply Start A New Discussion

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™