Company Salary structure change

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Raj (Querist)
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21 February 2011 Hi,
Am new to the forum and have a question, I was hoping, the experts could provide information for.

The company I work for has a salary structure with about 70% Basic + DA component. We are looking to restructure the salary component to 35-40% basic +DA ( which is more in tune with the market)

What effect does this have on statutory regulations like PF, gratuity etc and what steps do I need to take to update various govt bodies of thie change to ensure a smooth transition from the current salary structure to the proposed one?

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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21 February 2011 in my opinion no permission is required from any Government authorities. You can change salary structure if employee agrees to that

Raj

Raj (Querist)
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21 February 2011 Thank you Sunil,

I wanted to check on the formalities involved, especially regarding PF. If Im paying x amount per month towards PF for an employee, post change of the salary structure, I'll be payinf a lesser amount. Would this raise any questions from the PF guys and is there any specific method to update the change in the salary structure to the PF authorities?

Appreciate your response on this.

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