Dear Sir,
Sub: Basic Salary reduced in Salary structure while Gross salary is unchanged.
I am working since last 12 years in a public limited company (BSE listed). Now company is going to change the salary structure by reducing the basic salary to 25% of Gross salary, in place of existing basic salary of 40% of gross salary. In both condition the Gross salary is not changed.
Existing structure (basic approx. 40% of CTC)
Basic Salary : Rs. 15000/-
CTC: 4,50,000/-
New revised structure (basic approx. 25% of CTC)
Basic Salary : Rs. 9,300/-
CTC: 4,50,000/-
Sir, this change is not acceptable to me as it will reduce my PF contribution as well as my Gratuity and my Leave encashment at the time of termination.
My question is:
Is my company lawful to do this without taking our (employee’s) prior confirmation/acceptance?
And as an employee can we deny it ?
What are the possibilities; what are employees rights?
Regards
Satvekar