Please advise...
we at present have our salary structure bifurcated into basic, transport and HRA. Now we want to restructure it and introduce allowances like special allowance, city allowance etc. so as to control the employer's liability (PF contribution, encashment of leaves, gratuity)which is directly effected by basic salary.
My querry is that for people whose present basic salary is more than 6500/- p.m. will it attract any legal implication if their basic salary gets reduced. Eg. Suppose present salary is 10000 basic+ 2000 HRA n we restructure it as 8000 basic+ 2000 HRA+ 2000 SPECIAL ALLOWANCE will it attract any legal complication as we are reducing the basic salary component? Note that we have a cieling limit for PF contribution as 6500/- p.m.
Please clarify
Rolly
we at present have our salary structure bifurcated into basic, transport and HRA. Now we want to restructure it and introduce allowances like special allowance, city allowance etc. so as to control the employer's liability (PF contribution, encashment of leaves, gratuity)which is directly effected by basic salary.
My querry is that for people whose present basic salary is more than 6500/- p.m. will it attract any legal implication if their basic salary gets reduced. Eg. Suppose present salary is 10000 basic+ 2000 HRA n we restructure it as 8000 basic+ 2000 HRA+ 2000 SPECIAL ALLOWANCE will it attract any legal complication as we are reducing the basic salary component? Note that we have a cieling limit for PF contribution as 6500/- p.m.
Please clarify
Rolly