# Employers reducing fixed salary, increasing variable

**URL:** <https://community.greythr.com/t/employers-reducing-fixed-salary-increasing-variable/2748>\
**Category:** Payroll\
**Tags:** paymentofwages, salary-reduction\
**Created:** [May 27, 2021, 6:08am UTC](https://community.greythr.com/t/employers-reducing-fixed-salary-increasing-variable/2748 "2021-05-27T06:08:04Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Gowri](https://avatars.discourse-cdn.com/v4/letter/g/e480ec/32.png) [@Gowri](https://community.greythr.com/u/Gowri)\
**Post date:** [May 27, 2021, 6:08am UTC](https://community.greythr.com/t/employers-reducing-fixed-salary-increasing-variable/2748/1 "2021-05-27T06:08:04Z")

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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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**Author:** ![Arpana](https://avatars.discourse-cdn.com/v4/letter/a/53a042/32.png) [@Arpana](https://community.greythr.com/u/Arpana)\
**Post date:** [May 27, 2021, 6:32am UTC](https://community.greythr.com/t/employers-reducing-fixed-salary-increasing-variable/2748/2 "2021-05-27T06:32:14Z")

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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