Employers reducing fixed salary, increasing variable

Ask the Community Payroll
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1

Hi team,

Is it legally right for employers to reduce fixed pay compensation and move to variable pay due to Covid times? How can employee get help in this situation?

Please advise

Thanks
Gowri

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2

Hi Gowri,

Due to covid if you want to reduce the employee’s salary , you can do it but it is advisable “Not to change Basic”.

By doing so employees PF ESI and Gratuity will not be affected.

Let’s wait for other opinion on the same.

Regards
Arpana

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