Salary Restructuring Confusion: What Are the Real Benefits and Drawbacks for Me?

Salary Restructuring Concerns

This is Pankaj. I am working in a manufacturing company. I received a salary restructuring letter from the HR department. My basic salary increased, general allowance decreased, annual bonus increased, PF also increased, but CTC remains the same. What are the benefits and losses for me?

Thanks & Regards,
Pankaj

Sometimes it happens when restructuring takes place. If there is an increase in the basic salary, it will have long-term benefits.

If you are in the taxable bracket and your HRA and conveyance allowance are decreased, claiming IT reliefs will result in some loss for you. I don’t think there is a benefit for you regarding this restructuring when negotiating with your next employer since the CTC remains the same.