Working with charitable trust - Can Basic Salary be Reduced?

jeetendra rawal (HR Manager)
Greeting for the day
Presently i am working with charitable trust, now our basic salary is reduce i.e. from rs:17000-00 to rs: 8000/- p.m. as per minimum wages in Gujarat.
My question is " BASIC SALARY CAN BE REDUCED?"
Kindly give your valuable inputs and if any awarded in any court, kindly share the details.
Ritambhara parihar
Hi Jeetendra,
The basic salary cannot be reduced.
Regards,
Ritambhara
Bharat Gera
Dear Mr Rawal,
1. You are an HR professional, you should know this that salary can not be reduced. Hope your Trust is deducting PF etc and other applicable statutory dues from your salary.
2. You are not covered under Minimum Wages by virtue of being Manager.
3. How long have you been working there?
4. What basic salary was mentioned in your Appointment letter.
5. Does this reduction in Basic salary has reduced your take home salary?
6. Have they increased the allowances?
If you answer these questions, this will help us in addressing your problem.
With Warm Regards
Bharat Gera
HR Consultant
Srinath Sai Ram
Mr jeetendra,
Which Category/Sector of Minimum Wages is applicable to your "Charitable Trust" Please share relevant Minimum Wages Notification made applicable to your Charitable Trust.Since when Minimum Wages is made applicable? is it with retrospective Date or prospective date? By virtue of reducing your Basic Salary, whether your Gross Salary is also reduced? is it restructuring of Salary Components?
How it impacts-EPF,BONUS,GRATUITY
saswatabanerjee
There is nothing in law to prevent an employer from reducing any component of the salary structure. The salary structure is always left to the decision of the company.
The restrictions, on the other hand are of a consequential nature :
- concurrence of the employee needed as this amounts to change of terms of employment, which can not be done unilaterally
- whether this results in reducing payment of PF or esic (not allowed)
- whether there is any provision for the same in standing orders applicable in the state.
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