Reduction of basics while preparign increments

PBS KUMAR (Querist) 01 December 2011 This query is : Resolved
Dear EXPERTS,

Is it permissible if an employees BASIC salary reduced while formulating the increments ? If it is unavoidable situation, is there any case law not to reduces the current Basic salary ?

Regards,

PBS KUMAR

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Guest (Expert) 01 December 2011
You being HR Manager, can you please state what would be the significance of basic salary, if that can be reduced just for the purpose of formulating the increments?

Rajeev Kumar (Expert) 01 December 2011
Yes mr.dhingra is right

PBS KUMAR (Querist) 02 December 2011
Dear Shri Dhingra ji AND Rajeev Kumar ji,

I know as per PF act Sec.12 and ESI act, Sec72 it may not be justification. But as an experts may please give your valuable coments on this and which will be very useful for those who understand the interpretation as per leagl conviences.

Regards,
PBS KUMAR

Guest (Expert) 02 December 2011
Dear PBS,

You may be knowing that every monetary benefit to an employee is based on basic salary, and even if for PF & ESI, no splitting of basic is permissible, it is wrong to suggest that the increments should be based on any amount less than the basic salary which amount does not at all form the part of the salary structure.