#AnonymousTo the best of my knowledge, reduction of basic salary which would lead to reduction in benefits such as provident fund etc, is not allowed.
I sourced this from one of our extensive discussions on citehr.com
THE EMPLOYEES' PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952
(Act No. 19 of 1952)
Dated 4th March, 1952
12. Employer not to reduce wages, etc.
No employer in relation to an establishment to which any Scheme or the Insurance Scheme applies shall, by reason only of his liability for the payment of any contribution to the Fund or the Insurance Fund or any charges under this Act or the Scheme or the Insurance Scheme reduce whether directly or indirectly, the wages of any employee to whom the Scheme or the Insurance Scheme applies or the total quantum of benefits in the nature of old age pension, gratuity, provident fund or life insurance to which the employee is entitled under the terms of his employment, express or implied.
Employer is not supposed to reduce wages(which refers to Basic Pay) to minimize any benefit.
attribution Can basic salary be reduced? - pf deduction.. CiteHR Page 3
Having said that, if terms or the nature of your service with the organisation have been altered, the same may be used as a pretext to reduce/ alter your salary.
Please feel free to address further concerns.
11th July 2013 From India , Delhi