Can My Company Adjust Allowances to Keep Net Salary the Same Despite Wage Changes?

I would like to know, my company wants to make changes in employees' minimum basic wages as per the Minimum Wages Act on 01.01.2018 but does not want any changes in net salary. So, is it possible to reduce their HRA, Conveyance, medical, or other variables to meet the net earning as before?

Dear 3290ASHU,

There have been changes in the conditions of service regarding matters specified in the Fourth Schedule of the ID Act. Therefore, your employer is obligated to provide a 21-day notice of change under section 9A of the ID Act to implement these changes.

Thank you.

Dear Colleague,

Please clarify your intentions for doing this. Are your current total wages, inclusive of all allowances stated by you, more than the minimum wages prescribed? In that case, where is the need for reshuffling the wage components?

Regards,
Vinayak Nagarkar
HR Consultant