As of now, it is permissible to set basic wages lower than the allowances until the new Wage Code 2020 comes into effect.
Basic wages reduction as a disciplinary measure
Basic wages of a worker can be reduced as a disciplinary measure if the employee is found guilty. If there is a need to reduce the basic pay of all workers, it must be done in agreement with the unions. This can only be achieved by persuading the unions to accept the proposal, which is a rare occurrence.