# Reduce the salary of employee in any circumstances

**URL:** <https://community.greythr.com/t/reduce-the-salary-of-employee-in-any-circumstances/3497>\
**Category:** HR\
**Tags:** employee, salary-structure\
**Created:** [October 22, 2021, 5:51am UTC](https://community.greythr.com/t/reduce-the-salary-of-employee-in-any-circumstances/3497 "2021-10-22T05:51:47Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Sandeep\_G](https://avatars.discourse-cdn.com/v4/letter/s/a8b319/32.png) [@Sandeep\_G](https://community.greythr.com/u/Sandeep_G)\
**Post date:** [October 22, 2021, 5:51am UTC](https://community.greythr.com/t/reduce-the-salary-of-employee-in-any-circumstances/3497/1 "2021-10-22T05:51:47Z")

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Hi,

Can employer reduce the salary of any employee/ employees in any circumstances? What can be valid reasons?

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**Author:** ![SantoshK](https://avatars.discourse-cdn.com/v4/letter/s/58956e/32.png) [@SantoshK](https://community.greythr.com/u/SantoshK)\
**Post date:** [October 25, 2021, 1:38pm UTC](https://community.greythr.com/t/reduce-the-salary-of-employee-in-any-circumstances/3497/2 "2021-10-25T13:38:05Z")

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Some information on this is employers can reduce the employee’s salary because of the poor business, low demand etc. or as a demotion in the employees job designation. As it says in both cases, cannot reduce the basic salary. Basic component of salary does not change. Some more details [here](https://paycheck.in/career-tips/workandpay/reduction-in-wages-or-working-days-for-cost-reduction-not-legally-tenable) …