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Preethi (consultant)     02 May 2014

Reducing of basic salary

Can we reduce the basic salary of senior members who currently have higher basic? For eg if basic salary is Rs. 30000/- per month and pf contribution 3600/- (12% of actual basic) than can we reduce the basic to Rs. 15000/- and pf contribution to Rs. 780/-?

Is section 12 - reduction of wages applicable to all employees. (Senior Manager/General Manager level)

If it can be done can we do the restructuring and give a letter to employees?

Thank you in advance.



Learning

 3 Replies

Sudhir Kumar, Advocate (Advocate)     02 May 2014

your proposal is illegal. 

 

It is forbidden under EPF&MP Act to reduce wages for the sake of reducing PF dues.  PF dues will still levy on the original rate. 

Bhagwati Prasad (Manager -HR )     03 May 2014

Basic salary cannot be reduce it is illegal

Regards..BP

Kumar Doab (FIN)     04 May 2014

Repeated query:

 

https://www.lawyersclubindia.com/forum/Payment-of-salary-sales-team-on-basis-of-target-achieved-100902.asp#.U2ZoNkeBmXU


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