would you like to guide me in the below given issues.
1.Govt. declares the minimum wages for the workers( For unskilled, skilled, office staff etc.) .Can we make the breakup of that minimum wages and deduct the PF, at a lower rate.
For examble:- The Current minimum wages for unskilled worker in Delhi is Rs.3516.00.can we make the break up of this wages as Basic - Rs.2500.00 & other allowance - Rs.1016.00 and deduct the PF on basic.
please clarify and also inform the ruling for this to proceed further.
Thanks & Regards
First of all i want to tell you that Basic Wages is the meaning wages. We cant Bifurcate the Minimum Wages because it is Basic Wages. But after that I seen that most of employer Bifurcate the minimum wages that is against law. So you can also Bifurcate the minimum wages but you should remember the following things:-
1) ESIC will be deduct on full minimum wages. You cant Bifurcate Minimum wages for ESIC.
2) For PF Your minimum Basic wages should be Rs. 1950/- because Employer side minimum PF should be Rs. 234/- that will out on Rs. 1950/- so you can Bifurcate minimum wages only for PF.
I think this will help you.
As per my knowkedge the rate of Minimum wages as per act mininus
Olny Basic wages which was decided by Govt.
You not futher divided the same for your convennious.
But one thingh is sure if you are paying some thing more than the
rate of minimum wages then you are free to bifragate the same.
But again you have to certify the wages structure with authority under payment of wages act.
hope you get it
With out compliance of section 9A of the Industrial Disputes Act, 1947 you are not in a position to change the Consolidated salary of Rs.4000/- pm of your driver into different wage components like basic,etc.
Comments submitted as requested.
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
311, AKD Tower, Sector 14, Gurgaon
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