Is It Possible That My Net Take Home Is Lower Than My Basic Salary ?

c.neyimkhan56@gmail.com
Hi Mahib
Most Cos. fix Gross Salary xx and 40 to 50% of it will be the Basic salary to reduce PF/ESI/Bonus/Gratuity liability. In your case, the Basic which was 6,500 earlier; was revised to 15,000.
Please let us know
1.what was ur Gross Salary earlier &
2. Gross Salary after the revision ? (i.e.,when your Basic was revised from 6,500 to 15,000).
This may help us to know the motive of revising Basic more than double of the earlier Basic. Is it to avoid PF /ESI etc., Please give the break of deductions also to know the working of take home pay and how the increase in Basic has resulted in reduction of take home pay.
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fc.vadodara@nidrahotels.com
There may be rare chances of such case, as told by Mr. Sovik, if the Basic is contributing 99% of the Gross Salary after revision and the other component contributes 1% there are chances wherein the Net Take Home salary can be lower than Basic. But an appropriate view can be given only after looking at the comparison of the current and previous salary structure. It will be wrong to give vague answers in general.
saswatabanerjee
Payment of Wages Act specifies that the total deduction from gross wages can not exceed 50% of gross salary.
So, for the in hand to go down beyond that, basic must be more than 50% of gross.
However, the OP clarified that his basic was 6500 and now its 15000 but his take home has come down from 13000 to 12500.
This is definitely not right. It appears that the management is trying to restructure the salary to avoid PF or is deducting increased PF including employers contribution from employees gross salary. Both of which are illegal.
I can not think of any circumstance in which with an increase in basic pay the gross will reduce.
It appears to be a case of pure manipulation.
However, as you rightly pointed out, the OP does not seem to be interested in sharing his pay slip (before and after the salary restructuring) so we are only doing an academic exercise to improve our own knowledge.
sushilkluthra@gmail.com
Dear,
Because of increase in wages beyond 10000, the queries is out of purview of Payment of Wages Act under section 1(6). Even under section 7, deductions up to 75 percent can be done. There does not appear to be other law governing impermissibility of payment of wages below basic pay except attachment by court etc under CPC.
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