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For pdfFiller’s FAQs
Below is a list of the most common customer questions. If you can’t find an answer to your question, please don’t hesitate to reach out to us.
What if I have more questions?
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How do I write a letter of salary adjustment?
Do research first. Whether you plan to ask for a small increase or a large one in your salary increase letter, do your research first. Timing is everything. If you're planning to ask for a salary increase, make sure that you time it right. Request for meeting. Backup your request.
Can basic salary be changed?
Under the new system there is a probability that for few employees the basic salary may decrease from their present basic salary., though their gross will either not change or may increase. The employees so affected are also okay with the change.
Can basic salary be increased?
”Generally, a higher basic pay enhances the tax exemption limit for HRA. It also increases contribution towards retirement benefits like provident fund (usually 12 per cent of the basic pay) and superannuation fund, which means a lower take-home salary,” says Prized Firewall, partner, Tax, KPMG.
What is the maximum limit of basic salary?
Ideally companies keep their Basic salary between 20-30% of the gross salary. But as an employee grows in level/designation, usually some companies put a cap on the amount of Basic salary, since it has impact on PF / Gratuity etc.
Is basic salary can be reduced?
You cannot reduce the basic salary of any employee. Please understand that all the statutory deductions like PF, gratuity, superannuation are based on it. The quantum of deduction cannot come down from a given level.
What should be the basic salary?
The total of basic pay and grade pay is used in assessing dearness and other allowances. Usually, basic salary is 40% to 50% of CTC (Cost to Company). Statutory components such as bonus, PF, gratuity and other benefits are determined on the basis of the basic salary.
Can an employer reduce your basic salary?
If an employer cuts an employee's pay without telling him, it is considered a breach of contract. Pay cuts are legal as long as they are not done discriminatory (i.e., based on the employee's race, gender, religion, and/or age). To be legal, a person's earnings after the pay cut must also be at least minimum wage.
Is it legal for a company to reduce your pay?
If an employer cuts an employee's pay without telling him, it is considered a breach of contract. Pay cuts are legal as long as they are not done discriminatory (i.e., based on the employee's race, gender, religion, and/or age). To be legal, a person's earnings after the pay cut must also be at least minimum wage.
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