Employer Not To Reduce Wages

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Employer Not To Reduce Wages

Under section 12 of the Act, Employees Provident Funds Miscellaneous Provisions Act, 1952, Employer not to reduce wages, etc defines the Act, under this section. According to this no employer in relation to any factory or an establishment to which any insurance related scheme is applicable is liable to reduce the wages of the employees. Due to his liability to contribute to any charges or insurance funding under this, Act. Whether, directly or indirectly. The employer has right to reduce the wages of the employees. To whom the insurance scheme is applicable. Also, the total benefits are in the nature of the gratuity, life insurance, old age pension, or provident fund [W], entitled to the employees under his employment terms implied.

Therefore, any reduction made by the employer for any reason other than providing in section 12 of the Act. Thus the Act is not prohibited.  And he’s not liable to make any deduction on the basis of this liability only. E.g. if an employee’s gross salary is 30,000 INR per month, with no contribution in the PF. And if the employer tries or wants to implement then it should be a deduction from the employee’s gross in hand salary or the employer is not liable to raise per month CTC or both, of the employee. The contribution shall be to both the employee and the employer.

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