Understanding CTC, Salary Breakdown, and Employee Rights in Job Promotions

I've been promoted to a managerial position recently and was provided with an offer stating that it is all-inclusive. However, no breakdown was provided for me to analyze the offer, and I have to accept it within 7 days. I realize that the offer isn't all-inclusive because when I purchased the vehicle for which I was about to receive an allowance, they reduced my basic salary to accommodate the vehicle installment. I consulted the CHRO and requested a breakdown, and he said that in TCTC, there is no breakdown. However, when I complained to the MD's office, he provided me with the breakdown, which clearly indicates that the company only added 10% to my existing package as a Technician where I wasn't even on TCTC. The reduction of my basic salary, while we're not on a salary sacrifice scheme, severely affected my life. They even reduced my pension contributions.

Are employers allowed to reduce employees' salaries and benefits without the employees' consent, and what can I do?

Thanks in advance,

Johnnas

Dear Johnnas,

I don't know anything about the Laws of Employment in your country. But, generally, promotion means a higher status of employment with a higher salary commensurate with the increased responsibilities attached to the job. Personally, I feel that the scheme of C.T.C based Salary has certain hidden features like the rates of E.M.I quoted in hire-purchase schemes, resulting in a relative loss to the beneficiary. Therefore, it is better to negotiate with your management and either accept the promotion or forego it.

Employers have the right to remove certain allowances or incentives based on their decision or business environment. In such scenarios, they inform the employees about the withdrawal or reduction of monetary benefits, but they don't need the consent of employees.

Pon

While accepting the offer/promotion, it is important to know the breakdown of the salary.

CTC can be a misleading concept. Always compare CTC, Gross Salary, and Net Salary to decide if the offer is worth it.