Can My Basic Pay Be Reduced After Fixation? Seeking Clarity on Pay Adjustment Rules

I am a regular employee of Indian Oil Corp. Ltd. My basic pay was reduced after the issuance of the basic pay fixation letter. I had been working in an officiating capacity at a higher pay rate of ten percent above my existing pay for some time. After a while, I received a promotion within the same grade. As a result, my initial pay fixation was calculated based on the increased amount of ten percent above my original pay. However, the management has now re-adjusted my basic pay to the standard rate, excluding the additional ten percent.

I would like to inquire whether once the basic pay is fixed, it can be reduced or not...

Hi, can anybody tell me the procedure for deciding the basic wages? Are there any specific rules for the same?

Your query is not clear. Are you asking if you have worked in an officiating capacity for a period in a higher position and then returned to your original position? Or are you currently still working in an officiating capacity in the higher position?

Background Information

I am a regular employee of Indian Oil Corp. Ltd. My basic pay was reduced after the issuance of the basic pay fixation letter. I have worked in an officiating capacity at a higher pay rate, which was ten percent above my existing pay. Consequently, my initial pay fixation was carried out based on the increased amount by ten percent and my actual basic pay. However, the management has now readjusted my basic pay to the standard rate, excluding the additional ten percent.

Clarification Needed

I would like to clarify whether once the basic pay is fixed, it can be reduced or not.

Dear User,

First of all, I would like to suggest that you provide your details including your designation, department in which you are working, and the grade pay for your category. Your query is not very clear. However, whatever decision the management has made regarding the basic salary fixation is correct according to the laws.

Thanks & Regards,
Prabhat Mishra
(Officer - HR & Administration at Jaihind Projects Limited)
+91-9992005392
Web: Gas Power Plant Projects, Water Supply System, BOT Projects in India
E-mail: pmishra_bhu@yahoo.com, prabhat@jpl.co.in

Your query is good. There should be no change in your basic wages if you have been on the payroll of IOC for the last five years. Please refer to the Minimum Wages Act of 1945 and also read the EPF MIS Act 1952, specifically Clause 5, Section 1.

Hi,

As per the existing scenario, the Basic is normally 60% of the Basic Salary or 50% of the Basic Salary. The reason for this is that the P.F contribution is based on the Basic Salary, so employees benefit from maximum contribution. Additionally, Gratuity and Leave encashment are calculated based on Basic + DA.

Regarding the reduction of Basic Pay, normally, Basic Salary will not be decreased unless it is due to a demotion or non-performance.

Regards,
G.B. Mahendra Kumar
Fortune Hub - One Stop solution for Total HR Domain