Reduction in Basic salary
Dayadhar T.Sharma
(Querist) 25 June 2011
This query is : Resolved
Dear Mr. Makkad,
In the year 2007 my basic salary was Rs. 15000/Pm ,in 2008 it was 22000/Pm.in 2009 it was reduced to Rs. 7900/pm and in the year 2010 it was further reduced to Rs.7500/pm.There was no effect on the overall monthly earnings.
I wish to know whether my company is authorized to reduce my basic salary that will effect my Gratuity and superannuation earnings?Is not the act of company violative of PF laws also?.
Please suggest I am in the service of the company and wish the basic salary which was Highest Rs. 22000/in 2008 be paid to me by the company.
How should I approach and whom should I approach for the redressal of my problem.
Await early reply.
Thanks
Dayadhar T. Sharma
Advocate. Arunagiri
(Expert) 25 June 2011
My suggestion is :- the company has not reduced your over all remuneration, then dont worry.
If you are a workmen as classified by the ID Act, you can complain to the Labour commissioner.
Dayadhar T.Sharma
(Querist) 26 June 2011
dear Mr. Arunagiri & Mr. Prabhakar singh,Is not the act of reduction of my basic salary on which only my PF contribution and my Gratuity is dependent.If my Basic will be less I shall get less grauity and if my Basic is less I shall suffer loss of PF savings.Is it not the violation of section -6 of Employees Provident Act.
Kindly study and give an actionable suggestion on which I can really act upon.
Await your prompt reply.
Dayadhar Sharma.
Advocate. Arunagiri
(Expert) 26 June 2011
If you are a workmen as classified by the ID Act, you can complain to the Labour commissioner.
If you are not a workmen, your only remedy is to file a civil case for restoring your previous basic salary. But, this litigation with your employer will affect your relationship.
That is why I have said, Be happy that the company had not reduced your over all income.
R.Ramachandran
(Expert) 26 June 2011
Dear Mr. Dayadhar,
You only said that you got a "salary" (though call it as "basic salary" - there is no such term known to the labour law as "basic salary") Rs. 15000/Pm ,in 2008 it was 22000/Pm.in 2009. The "Salary" or "emoluments" is the amalgum of various ingredients like basic pay, dearness allowance, compensatory allowance, hra etc. etc.
When you say that your salary was Rs. 15000 p.m. can you give the brake up as to what was basic pay and what was other allowances? If not, then what your management has done now is to make it clear to you, as to what the "salary" is made up of. That is what is basic and what are the other items.
Is it your case that during the year 2008 and 2009, when your salary was Rs. 15000 and 22000 respectively, the PF contribution was made by your employer on the basis of Rs. 15000/ and 22000/- and now the contribution has gone down?
Guest
(Expert) 26 June 2011
Dear Dayadhar,
Your question is incomplete, as you have not provided the constituents of your emoluments based on your basic pay of Rs.15,000, Rs.22,000, Rs.7,900, and Rs.7,500.
Further you have also not mentioned what salary structure was provided in your offer cum appointment letter.
You have also not mentioned whether the company notified to its employees or not the intention to change salary structure of employees.
Dayadhar T.Sharma
(Querist) 26 June 2011
Dear all,
I thank you all to take so much pain on this cumbersome matter.
Once again I make it clear that I was receiving Salary Rs.30,000 appx. inclusive of Basic salary+HRA+Conveyance & other emoluments.During the above periods though the overall home taken was not effected(it remained same) but basic salary was reduced and other allownces proportionally to make up the effect of reduction were increased .Hence apparently no effect on home taken salary but on my PF amount ,my EPF pension and gratuity which is deducted /paid on the basis of Basic salary .which will be paid on my retirement.
I hope I am clear now and expect a prompt reply.
Regards.
Dayadhar Sharma
mahendrakumar
(Expert) 26 June 2011
As Mr.Ramachandran has rightly put,confirm whether your PF contribution has gone down because of the readjustment of salary as claimed by you.
If you could present the details of your earlier salary including all components earlier as well as present,we may be able to give a better guidance.
R.Ramachandran
(Expert) 26 June 2011
Dear Mr. Dayadhar,
You jave still not made the matter clear.
You have not indicated the break up of basic pay, hra etc., Pf etc., when your gross was 15000 in the year 2008.
Similarly, you have not given such break up for the year 2009 when your salary was 22000.
Now you say that your salary is Rs. 30000/- even for this you have not given any break up.
As such, you have not at all given any clear facts so far.
Dayadhar T.Sharma
(Querist) 01 July 2011
I Wish to merely know whether section-12 of PF act will be applicable in my case or not?If yes then whom should I approach to for redressal or otherwise what?
Grateful to have put so much efforts.I will request to repeat the contents of my problem once more.
Thanks & Regards
Dayadha Sharma
