My employer gave me a salary slip where the HRA is double of basic.
Previously it was done in accordance to the calculation HRA 50% of basic in metros.
But suddenly my HR manager says that there has been change in salary structure and hence the change, when i told him HRA in no case be more than basic he said it can be. Please clarify.
I'm attaching the November salary slip this is perfect.
In the december salary slip they made the following changes:- basic= 6500, HRA=13530, other allowance=25070. Decuctions:- PF= 780, Prof tax=313, workers welfare= 20 and removed the rest like medical reimbursemt etc
If you see the novembers slip and compare with the decemb can this be done by the employer?
Please guide me, i'm planning to take legal action.
From India, Mumbai
1Previously it was done in accordance to the calculation HRA 50% of basic in metros.
But suddenly my HR manager says that there has been change in salary structure and hence the change, when i told him HRA in no case be more than basic he said it can be. Please clarify.
I'm attaching the November salary slip this is perfect.
In the december salary slip they made the following changes:- basic= 6500, HRA=13530, other allowance=25070. Decuctions:- PF= 780, Prof tax=313, workers welfare= 20 and removed the rest like medical reimbursemt etc
If you see the novembers slip and compare with the decemb can this be done by the employer?
Please guide me, i'm planning to take legal action.
From India, Mumbai
Dear Ashwin,
There is no Hard and fast rule that HRA should be less than basic. It is limited to 50% of the basic generally because of the exemption limits given in the Income Tax Act.
However, a professional organisation should intimate the proposed change to the respective employee and take their concurrance before changing the salary structure.
Srinivas L
From India, Hyderabad
There is no Hard and fast rule that HRA should be less than basic. It is limited to 50% of the basic generally because of the exemption limits given in the Income Tax Act.
However, a professional organisation should intimate the proposed change to the respective employee and take their concurrance before changing the salary structure.
Srinivas L
From India, Hyderabad
Hi,
I agree with Srinivas,
There is no hard & fast rule for HRA, its purely companies call were Flexi Salary structure is not applicable.
However, employer must intimate employee regarding Salary Structure change.
From India, Mumbai
I agree with Srinivas,
There is no hard & fast rule for HRA, its purely companies call were Flexi Salary structure is not applicable.
However, employer must intimate employee regarding Salary Structure change.
From India, Mumbai
It is a live case to exemplify the functioning of Indian corporates and how employee benefits are sacrificed and the company evades various taxes and statutory dues. Such practices should be condemned.
What is interesting, is to note that the basic pay has ben brought down to Rs. 6500, which is the ceiling of applicability of EPF Act.
The implications of reducing the basic pay are numerous; including :
From India, Delhi
What is interesting, is to note that the basic pay has ben brought down to Rs. 6500, which is the ceiling of applicability of EPF Act.
The implications of reducing the basic pay are numerous; including :
- the attempt to reduce payment of P.F. by the company. (In the exhibit, one can see how it has drastically reduced from Rs. 1650 to Rs. 780.). This has a long term impact on employee's finances and future financial security.
- the employee will have to pay more Income Tax as many benefits like Medical reimbursement, Conveyance allowance etc. has been withdrawn.
- the contributory P.F. (12% of earlier basic pay) also enabled savings on Income Tax by the employee.
From India, Delhi
Raj Thanks for your response:-
What can i do in this regard. Do i have any recourse?
Can i take this up with any authorities or can i initiate any legal action?
Also please let me know wheathr the HRA which is almost double of basic (in december salary) is allowed as per the law.
***Just to add all these changes were made without any prior intimation.
From India, Mumbai
What can i do in this regard. Do i have any recourse?
Can i take this up with any authorities or can i initiate any legal action?
Also please let me know wheathr the HRA which is almost double of basic (in december salary) is allowed as per the law.
***Just to add all these changes were made without any prior intimation.
From India, Mumbai
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Employer-PF-res trict to wages of Rs 6500.pdf