1) your basic salary should be above the minimum wages

2)There is no law governing salary breakup.

3) Normally You should not decrease the basic pay.

4) pf act says that salary should not be decreased when introducing pf. That is salary should not be reduced to pay the pf.

1. you can do so.

2. salary is like a consideration and employment is an agreement. according to contract act, consideration of the agreement is subject to variation and u/s 25 of the contract act a person can take any amount as consideration.

3. even you can take token amount as salary, there is no restriction in law if person has given his consent to work at below the minimum wages.

If I reduce the Basic salary then automatically it will effect everyone PF.

A. yes, it will be reduce automatically. it will also affect your gross income so your income tax liability will also be decrease. you can make change but you have to take consent and consent should be free.

Hello,

1) Your basic salary should be above the minimum wages as there happens to be no law governing the salary break up.

2) Provident Fund act clearly lays down that says that basic salary should not be reduced during the introduction of PF.

Are you running a company or a firm?

Are you the owner/proprietor or whether the firm is a partnership firm?

What is the rule your company states about it.

You cannot decrease the basic salary or change the structure of salary from the one what you have already circulated in the employment offer letter.

You have to incorporate a change in the company policy in this regard and an effective notification is to to be promulgated in this regard after the decision about this has been taken in the company following the procedures in this regard.

Discuss with your auditor and company's legal adviser before taking any such decision