Management instructed me to reduce Basic salary % - 50% to 35%

Satishchandra123
Hi all, My management instructed me to reduce Basic salary %
Previous: Basic is 50% of Gross salary
Present: Basic is 35% of Gross salary
May i fix this 35 % of basic now?
Suresh Jakhotiya
Dear Sir
Basic salary can not be reduced ,specially if it goes in favour of the Management
Regards
Suresh
Your Friend
Satish, why your management wish to reduce the basic pay? are you ok with reduction? what is your point of view?
Basic pay should not get reduced, if any chance you are doing so (Management force) then please check minimum wages act of your state.
Satishchandra123
so, what is the minimum basic salary percentage of gross salary that an employer pay.
as per which act was it proposed ?
nanu1953
Tell your management to read Supreme Court Verdict Feb,2019 regarding PF Gross. Also tel to read the definition of "Wage " under wage code (not yet implemented but will be implemented any time) .
Not wise as well as it will be bad in law to minimize Basic Salary.
S K Bandyopadhyay ( Howrah, WB )

USD HR Solutions.
Satishchandra123
Sure sir, I will read..
Thank you so much
CIM-Operations
Dear Sir,
Please note that reduction in Basic pay is not legally permitted and can be challenged. It will have a tantamounting effect on PF contribution, gratuity and any other allowances paid on percentage of basic.
suresh-balasubramanian
Please check in PF Act. You cannot reduce the basic wages for your advantage. once fixed you are suppose to adopt it without reducing it.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute