ashok.jangra Started The Discussion:
Dear Sir and All my seniours

I want to know just The point of PF is to be paid on the minimum wages

right or other because many of security firm pf paying on basic whose amount less tah minimum wges
and also require a notification or rules copy for the same

waiting for positive response

Dear Mr. Ashok,

Greetings for the day :)

PF is always deducted on Basic it doesnt matters whether it is higher or lesser than minimum wages but the gross pay should not be less than minimum wages applicable on that particular industry or in state
Dear Kapil
Thanks for Reply
but during the April 2005 I heared that PF on baisc but not less than minimum wages
So I have required more comments on this from all seniours and any notification


minimum wages subjectis different & PF is different.
min wages cann't be split ,If u spilt ,Basic,DA components should be as per Govt Min wages ,other components like HRA,CCA & other allowences can be given apart from min wages ,Hence, PF has to be paid on Min wages.

min wages cann't be split into 60-40% break up.
but in practise most of the companies follow the 60-40% break up,NO PF commissioner will give in black & white for supporting the spliting the min wages...
Ya. I agree. There has been judgment passed in the Supreme Court on the hearing of a union cadre that the PF has to be paid on the minimum wages and so minimum wages Thanks Poonam

Dear Poonam,

Greetings for the day:)

I want to inform you one thing that judgement can't be considered until unless it has been amended in the act.
Do you have any info about such amendment or any section/rules which says it is a mandatory thing??

Judgements are appeallable
Dear Frnd,
PF is payable on Basic Pay plus DA. Every employee whose Basic+DA is less than or equal to Rs. 6500/- at the time of joining the employment are compulsorily required to be covered under the ACT. Others are not required mandatorily. Copy of the Rule and Definition is attached. Trust this meets your requirement.
Sarath Chandra
Senior Manager
Attached FilesProvided by community member sarat007. Register to join your network of peers.
File Type: pdf Provident Fund - Excluded Employee - Definition.pdf (58.5 KB, 2253 views)
Dear Seniors

In Tamil Nadu we are facing the same kind of problems in factories(minimum wages splited into basic and HRA and PF deducted on basic + DA alone). Mr. Poonam can you please post the supreme court judgement regarding this contraversy. Some of the inspector of factories and the social compliance auditors are saying PF has to be deducted on the minimum wages. But we ask any mandatory rules from these Dy Chief Insp of Factories or Social Compliance Auditors then they also not having clear idea but they says what we are saying is correct and you have to oblige.

In this case can any one post the relevent PF commissionors directions or post any mandatory rules that will be useful for us.

Best Regards
Thanks for intrest in mym issue I think this deduction can not less minimum wages but amny of company are paying on less than minimum wages
so I want to clear justification of EPF or labour departemnt
Dear All, Please find attached the copy of PF notification which is issued by PF Dept., there is clearly mentioned that the PF is applicable on minimum wages.
Attached FilesProvided by community member dutt sharma. Register to join your network of peers.
File Type: pdf PF Notification.pdf (117.2 KB, 863 views)


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