kabsl
1

Hi Amarjeet,
my phone number is +971 50 725 8083 - alternately, I will be in Mumbai on Monday and will be available to speak on +91 9987 546 153. you can also email me on
regards
Kabir Luthra

From United States, Los Angeles
Satya P
2

Dear Vipul,
Thanks for your inputs. Could you kindly suggest as to what prevent me keeping basic at Rs. 6600/- where total salary is Rs. 7000/-. Essence is that I am paying far above the Minimum Wages and the prescribed limit of 6500 for providing option to employee, it is not saving PF, rather utilising the minimum prescribed limit while allowing the employee to manage his finance on his own, otherwise there is no use of providing option to employees with basic above 6500/- to contribute for PF or not.
Now the question are-
1. If there is any regulation which mandate any minimum % of gross salary to be the basic salary ?
2. Is it necessary to split the salary in heads like Basic, DA, HRA, Conv, LTA...etc ?
3. If any law prevent paying consolidated salary which is above the minimum prescribed limits ?
Would appreciate comments with relevant regulations.
Regards
Satya
# 9818066620

From India, Gurgaon
kabsl
1

Satya,

there are no explicit laws that govern this area. only people's deductions from what they read. the only point that has some clarity, that too only after the PF department has taken up cases against some large establishments, is that basic salary should not be less than the state minimum wages.

now this causes some additional confusion in the sense that in many states, minimum wages is already accounted for as Basic + (V)DA. can you then add another DA on top of this - is this also PF able?

in terms of allowances you can pay whatever you want - call it dancing allowance, or uniform washing allowance or haircut allowance - if you pay it each month, the PF/ESI inspectors will want you to deposit money against it. there are some allowances like CCA and Washing Allowance that dont attract PF as on date - but these keep changing

all in all there is very little clarity on these issues. the labour department says one thing, the factory inspector another, the PF people a third and ESI a fourth. for the moment, it is safe to assume the following to stay out of trouble:

1 keep your basic at least equivalent to minimum wages and pay PF on this amount

2 for people with salaries over 6,500 keep 50% as basic (ensure it is over minimum wages) and the balance as allowances

regards,

Kabir Luthra

From United States, Los Angeles
lionel4444
1

Hi Hardik,
Your below 2-liner has given me the CLEAREST understanding of a topic that seems to be a confusion between "Basic V/s Minimum Wages V/s EPF deduction". I'm only hoping your facts are from the right source, because I have understood your statement perfectly.
Thanks Again.... Lionel

From India, Mumbai
ajsbhangu
2

Hi Lionel,
I wish the 2-Liner of Hardik been from a right source. I am not trying to make the topic confusing but the truth is that as per the guidelines of the EPF Deptt., that I am attaching herewith, the deduction of the P.F. cannot be less than the minimum wage. As far as the carry home is concerned it can be obviously more than the minimum wages, no doubt about that. Please go through the Departmental Orders.

From India, Mumbai
ramanuj.hardik
Hi Lionel, It was correct nevertheless there are two recent amendments appending here for your perusal. — Regards, Hardik
From India, Pune
Attached Files (Download Requires Membership)
File Type: pdf P F LATEST JUDGEMENT.pdf (1.71 MB, 340 views)
File Type: pdf EPF Circular on Splitting of Min Wages Dt 23.05.11 (1).pdf (684.1 KB, 216 views)

preeti932@gmail.com
preeti
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From India, Lucknow
Satya P
2

Dear Hardik, Could you please provide me the Order of Punjab & Haryana High Court dated 1st Feb. 2011 on splitting of Minimum Wages. Regards Satya
From India, Gurgaon
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