Can any employer reduce CTC? Suddenly HR is saying that they will not give additional travel allowance

ashok-kumar1
Can anybody help me with this - Need urgent solution!

One of my colleagues got a job in Haryana and the CTC was 30k per month including additional travel allowance but was working in Delhi as his line manager instructed.

He got 30k for 2 months and now suddenly HR is saying that they will reduce his salary and will not give additional travel allowance as now he will be transferred to Delhi only and the revised CTC will be 28k per month.

My query is "Can any employer reduce CTC"?
Madhu.T.K
If the conveyance allowance is not part of salary but outside the salary (Gross salary) but within the CTC, then the same can be reduced if the station of work is changed in favour of the employee. At the same time, if the Conveyance allowance/ travelling allowance is a component of salary, then it is a fixed component and the employer cannot reduce it with change in station.
KK!HR
The traveling allowance would vary with the posting. The traveling allowance for a person posted in Haryana and required to travel to Delhi would be different from a person posted in Delhi and is required to move in Delhi city. If that person has to physically visit the headquarters in Haryana, Travel Allowance can be claimed.
It is clarified many a times in this forum that CTC is only an indicative sum for the time being and it would be a hypothetical calculation of the cost incurred by the company in keeping a person in employment. It would significantly vary from the actual monthly salary. So the reduction in CTC is not prejudicial at all.
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