I am working in a public sector company which is an NBFC, and the management of my company comes from an insurance behemoth that recently got listed.
Talks are running around that the existing pay structure, which is in the pay scale, will be replaced by a CTC model.
I joined the company through an open notification, and in the offer letter, it is mentioned that my wages would be paid on a pay scale which will have revisions every 5 years (similar to public sector banks).
Can my employer curb the benefits I am currently enjoying? Can I be paid lower than what I am being paid now?
From India, Hyderabad
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Talks are running around that the existing pay structure, which is in the pay scale, will be replaced by a CTC model.
I joined the company through an open notification, and in the offer letter, it is mentioned that my wages would be paid on a pay scale which will have revisions every 5 years (similar to public sector banks).
Can my employer curb the benefits I am currently enjoying? Can I be paid lower than what I am being paid now?
From India, Hyderabad
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Dear Aditya,
Employers are not allowed to cut the pay of their employees without discussion and information, and it is illegal to change the salary structure without informing the employee. However, as per amendments, pay structure can be revised.
If the conveyance allowance is not part of the 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 favor of the employee.
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82Employers are not allowed to cut the pay of their employees without discussion and information, and it is illegal to change the salary structure without informing the employee. However, as per amendments, pay structure can be revised.
If the conveyance allowance is not part of the 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 favor of the employee.
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Employee Benefits.doc