1. As of now, it is permissible to fix basic wages lesser than the allowances till the new Wage Code 2020 comes into vogue.
2. Basic wages of a workman can be reduced as a punishment after a disciplinary action and the employee is held guilty. If the basic pay of all the workmen is to be reduced, it can be done only as per agreement with the unions. This is possible if you are able to persuade unions to agree to your proposal, however, it is agreed so only very rarely.