Altering basic pay scale to implement new VDA Scheme
Palak Lotiya
(Querist) 12 March 2010
This query is : Resolved
Hello,
I wanted to know if any organization can change/alter its existing Basic Pay Scale, so as to implement the new VDA scheme.
Thanks and Regards
Raj Kumar Makkad
(Expert) 13 March 2010
Alter means cannot minimize rather it can enhance.
Adviser-HRManagement
(Expert) 14 March 2010
Dear Mr Palak,
I hope you are specific about change in "Basic Pay", and not imply change in gross salary.
Yes, Basic pay can be changed/ or altered/ or lowered/ or enhanced, in order to accommodate the new/current VDA. However, please note the riders.
Sum of such Basic pay+FDA+VDA should not be lower than the pre-altered figure/sum. (This is what Mr Raj Kumar implies, that it has "enhance"). The consequent benefits of PF, ESI, Gratuity, Bonus, leave encashment, medical, or whatever such benefits linked to "Basic+VDA" should not get "affected/lowered" because of such alteration in Basic pay, (that is: shifting of a portion of Basic pay to VDA). If in any manner it affects, then such altering is illegal/unacceptable. If it does not affect in any manner, altering the amount-figures from one heading to another is not a problem, because the new VDA is expected/implied to "enhance" the gross salary.
Ravi, Adviser-HRManagement.
