Preethi (consultant) 02 May 2014
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.
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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