06 July 2019
Dear Sir, I am working in private company from last six years. This year I have resigned from the organisation and whatever increment I get they have all the amount in my special allowance in order to reduce pf as well as gratuities. My CTC is 13.8 lakhs without any variable and basic is only 34 000. Do we have some govt rule to challenge this? Except me all other employees has higher basic even they have lower ctc. My new company giving more than double basic around 66000 with annual CTC 16 lakhs. Please let me know who is correct? In my personal view my company is playing with my salary just to reduce my gratuity. Please let me know if we have some rule by govt to define basic salary of any employee.
06 July 2019
No Govt rule applicable to you as you are earning pay more than 15000. Your basic pay was fixed lower in view of lesser experience in your earlier job. The Supreme Court has ruled on 28 February, 2019 in favour of the Regional Provident Fund Commissioners by concluding that allowances in question such as special, conveyance, education, canteen, medical, etc, paid to employees, are required to be treated as wages for the purpose of PF unless such payments are:
"Variable in nature, or are linked to incentives for production resulting in greater output by the employee; "Not paid across the board to all employees in a particular category; ..
Now that the SC has defined the meaning of wages for the purpose of calculating PF contribution from your salary as well as matching contribution from the employer's side, the question arises how this decision is going to impact your take home salary. This decision is likely to impact only those domestic workers whose basic salary is or was (at an earlier point in time) less than Rs 15000.
06 July 2019
Sir, Thanks for your guidance! So It's upto HR and they can play with Basic according to their wish.. So in my organisation if some employee has less CTC in that case also he might have higher basic salary than me. So no logic can apply for basic salary calculation. Also one more doubt, now I am serving a notice period of three months and I have earned leaves 30 days. So my company is not allowing me to take leave as well as paying basic salary against my 30 days leaves.. Is that correct? Also if I leave company in two months they will charge full salary for third month against 3 months notice period.. But on the other side paying basic against my leaves.. Which is not employee friendly. Regards, Vineet
06 July 2019
They have to adjust earned leave of 30 days against notice period and you have to serve only 2 months. That's the practice followed in other companies.
06 July 2019
They have to adjust earned leave of 30 days against notice period and you have to serve only 2 months. That's the practice followed in other companies.
06 July 2019
OK understood.. If company say no for this adjustment. Then do employee have some option to Complain someone else for this practice? Regards, Vineet
08 July 2019
Sir, I checked with Hr again but he is saying on phone not written reply in email that I Need to serve three months at any cost and they will pay me only basic against my pending 30 days leave. So I think I need to contact labour commissioner now.. But I heard some of my colleagues that pune labour commissioner office also making favour to employer not employee and they are very corrupt.. So I am worried that even If I will complaint.. They will help me. So all my effort will be wasted
09 July 2019
Sir, This is exactly my plan and same i am saying to HR . If you want to deduct my notice period then deduct with basic salary. But he is saying , he will deduct full salary for notice period and pay me basic against my 30 days Earned leaves. Also if i start such rigorous discussion , they will not give my releasing letter which is important to join next company.So i am looking for expert who can guide me for this fight.
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