Understanding Basic Wage Regulations and Allowance Adjustments - CiteHR

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Can basic wages be fixed less than allowances? Can basic wages be reduced?
From India, New Delhi
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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.

From India, Mumbai
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