Dear amodsemilo
Please see some earlier threads too, on this topic.
Certain companies have been trying to devise illegal means of depriving the poorest section of workers (who earn the minimum wages); by REDUCING their basic pay and INTRODUCING some 'fictitious' or 'dubious' heads of salary; so that they are DEPRIVED of the statutory benefits that are BASED on Basic Pay, such as P.F., E.S.I. or other compensation.
Tell me, you are reducing their basic pay in the name of MOBILE ALLOWANCE. Is there really any need of Mobile phone for a worker who is earning Minimum Wages ??
If it is necessary, why not give Mobile allowance, OVER & ABOVE the Minimum Wages ??
If such practices go on unchecked, one wonders whether some day, the poor workers will get only Rs. 1 as their basic Pay and rest of the amount will be shown as some or other 'fictitious' and sham allowances.
As a conscientious and enlightened HR, don't you think it is a way of exploiting the poorest of the poor workers ??
I wonder how the value system of such companies and their HR's function.
Warm regards.