Salary Reduction Dilemma: Can Employers Cut CTC and Travel Allowance Without Notice?

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

Salary Reduction Issue

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

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

My Query

Can any employer reduce CTC?
Madhu.T.K
Conveyance Allowance and Salary Components

If the conveyance allowance is not part of the salary but is outside the salary (gross salary) yet within the CTC, then it can be reduced if the station of work is changed in favor of the employee. At the same time, if the conveyance allowance or traveling allowance is a component of the salary, then it is a fixed component, and the employer cannot reduce it with a change in station.
KK!HR
The traveling allowance would vary with the posting. The travel allowance for a person posted in Haryana and required to travel to Delhi would be different from a person posted in Delhi and required to move within Delhi city. If that person has to physically visit the headquarters in Haryana, travel allowance can be claimed.

Clarification on CTC
It has been clarified many 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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