Can We Lower Salaries if Marketing Targets Aren't Met? Seeking Advice on Fair Practices

Hi all,

Can we reduce the wages (salary) from the current level? We have our own salary structure for the marketing team, where if an employee does not reach their target, their salary structure can be adjusted. For instance, if an employee is currently receiving a gross salary of Rs. 40k and does not meet their target, can we reduce their salary from 40k to 30k?

Hi Veena,

You cannot change the salary structure every month. I suggest keeping the employee salary at 30k and providing a performance bonus or incentive that can vary monthly. For any clarification, please contact me.

Regards,
KM
Sr. Consultant (Labour Law and HR Compliance)
7708907021