Basic Salary - Appointment Letters

Hi,
I want to know about basic salary
If nothing is specified in the appointment letter, can any company decrease basic salary on basis of performance of HR personnel? The company has not placed any target for performance, it is at the discretion of the management to decide the benchmark of performance.
Secondly, can any company stop increment, in case if the appointment letter states " your salary will be reviewed every year " it does not mention increase or decrease the amount.
Do we have any law for basic salary being decreased or for increment?
Please advise.
thanks and regards
jd

Hi,
1. There is no rule to provide basic salary, always companies will design their CTC to keeping in mind to employee gets relief from tax.
2. there is such rule on increments, increments always based on your performance, if your performance is good then company may give increment otherwise not.

Dear Aditya,
Thanks for your reply, but I still want to know can company decrease the basic salary?
would appreciate your response.
thanks and regards
jd

Hi,
Decreasing and increasing of Basic is not in any law.
1. basic is fully taxable amount so how lower basic you will receive you will get relief from tax but your basic need to be design as per minimum wages act
2. If your basic is more, than you need to pay full tax on your basic amount.

Hi Aditya,
Then in case the basic is decreased, tax authorities have the right to ask the reason and the company needs to provide a valid reason for the same, is that what I understand from the above reply?
Does the employee have the right to question the employor for decrease in basic, can that be considered logic and valid reason to quit the company?
regards
jd

Hi,
1.No one will ask about your basic but basic should be design as per minimum wages act not less than this.
2. if employer will provide basic less than minimum wages act then employee have the right to ask employer.