Salary Structure Revision [Thread 526472]

Hello everyone! I have always been following CiteHR and got answers for my questions. Glad to be connected.
I need a small clarification on the Salary Structure revision. With the new budget coming in, our employees have been asking us to revise the salary structure and add few components. Travel/Conveyance Allowance has been increased to Rs.1600/- per month as we all know. Just needed a confirmation if the adjustment to Travel/Conveyance allowance alone will be enough. We have a plan to change the structure with this adjustment and issue new letters to all the employees. Kindly suggest! Appreciate your help!

It is better to revise structure and issue letters. If u increase conveyance then u have to adjust with some other allowance

While there is no law preventing change of salary structure at any time, it is a better idea to make the change at the time of your annual revision. Simply changing the structure by increasing one component and reducing another shows that the structure is not real but just ways of reducing basic (which impacts lots of things). In case of any disputes, this becomes a point and gets you on the back foot.
If your next salary revision is far away, then ofcourse you should change the structure now. Or if it just passed, then the structure can be change with retrospective effect

Anyone please help me to solve this..... How do we decrease office clerk basic salary(will increase their subsidies) without infringe the labor law??samibd

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Reduction in Basic salary cosmetically ( may impact contribution to EPF) is not permitted by EPF Act. So examine this aspect. And what is the purpose of "decrease office clerk salary", what is the cause of action ? Do U think now that Ur. clerks are highly paid as basic salary ??
And I don't understand what is this subsidies is all about, in the salary structure ?? Can you give more details??.

Thank you for the information! We have our Annual appraisal cycle happening right now. So we can issue the new letters with this adjustment. Appreciate your support.

Feel free to provide an option to your employees to choose between conveyance allowance and transport reimbursement. It is very much permissible under the ITA and your CA can help you with computation of the permissible amount. Again, be judicious in passing that benefit using relevant criteria. Best.