Funcaar (Self) 13 May 2012

Change in basic salary by management

I am working in a newspaper Industry where salary is as per recommendation of Manisana Wage Board Award 2000. I am working in a Public Ltd. Company. As I am working since long time, I had reached my salary stagnation point at 2005, but my management allowed me yearly increment in my basic salary every year up-to 2011. Now new management decided not to allow me further increment, not only that, they fixed my Basic pay at the point of my stagnation on 2005 and take out all my extra increment amount which increased my Basic pay and put it in a new allowance called personal allowance. My Gross Salary remains unchanged, but it affects my PF & Gratuity in long run. Govt. of India has accepted Majitia Award for news paper industry workers which is supposed to be implemented in our organization very soon. In this situation I shall lose a big amount on my new Salary fixation.

My question: Can Management arbitarily reduce my Basic Salary, which the company have earlier given me (it is in pay slip)?

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Kumar Doab (FIN) 13 May 2012

Employees Provident Fund and Miscellaneous Provisions Act, 1952

12. Employer not to reduce wages etc

No employer in relation to an establishment to which any Scheme or the Insurance Scheme applies shall by reason only of his liability for the payment of any contribution to the Fund or the Insurance Fund or any charges under this Act or the Scheme or the Insurance Scheme reduce whether directly or indirectly the wages of any employee to whom the Scheme or the Insurance Scheme applies or the total quantum of benefits in the nature of old age pension gratuity provident fund or life insurance to which the employee is entitled under the terms of his employment express or implied.

You may also look into the terms and conditions of your employment and basic pay offerred at the time of joining.

Valuable advice of learned experts/mebers is sought.