Hi All,
I need a small help. I got to know from the website and HR department that minimum wages for Punjab and Haryana have been revised for unskilled workers. I want to know if there are any rules for the minimum PF to be paid. For example, my basic pay is set at 1400, and I am paying Rs 168 (12% of basic). Is this in accordance with the law or a problem? In total, I am paying him 3594 rupees per month.
Please help; this query is specifically for Punjab. If there are minimum PF requirements for Haryana, please mention them.
Thank you very much; I will wait for a correct reply.
From India, Mumbai
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4I need a small help. I got to know from the website and HR department that minimum wages for Punjab and Haryana have been revised for unskilled workers. I want to know if there are any rules for the minimum PF to be paid. For example, my basic pay is set at 1400, and I am paying Rs 168 (12% of basic). Is this in accordance with the law or a problem? In total, I am paying him 3594 rupees per month.
Please help; this query is specifically for Punjab. If there are minimum PF requirements for Haryana, please mention them.
Thank you very much; I will wait for a correct reply.
From India, Mumbai
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Dear Rohit As per my knowledge the PF should not be less than the 12% of minimum wages decided by the govt. So the minimum wage decides the Minimum PF amount Regs Naveen
From India, Mumbai
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From India, Mumbai
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The minimum wage specified by Punjab is Rs 3594 for unskilled labor. Does that mean that I have to pay Rs 431.28 (12%)? Is it required that the minimum wage specified must be the basic salary, or can we bifurcate the specified minimum wage ourselves?
Please reply.
From India, Mumbai
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Please reply.
From India, Mumbai
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Dear Rohit As in Himachal we can change only 5% of the minimum wage, it means 95% of the minimum wage have to be kept as basic.Please confirm the same in Punjab & Haryana. Regs Naveen
From India, Mumbai
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From India, Mumbai
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Dear Rhoit/Naveen,
It is not like that and there is no relaxation of 5%. You have to pay PF on minimum wages. After the decision in the Group Four Security case, the PF department has issued a circular that there should not be a bifurcation of minimum wages, and PF should be paid on the minimum wages of the state. So, you have to pay 12% of the minimum wages of the state.
Thanks,
J. S. Malik
From India, Delhi
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It is not like that and there is no relaxation of 5%. You have to pay PF on minimum wages. After the decision in the Group Four Security case, the PF department has issued a circular that there should not be a bifurcation of minimum wages, and PF should be paid on the minimum wages of the state. So, you have to pay 12% of the minimum wages of the state.
Thanks,
J. S. Malik
From India, Delhi
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PF contribution is 12% of the basic salary, and the minimum basic wage is decided by the Labor Department. There is no relaxation on the minimum basic wage, as Mr. Malik said.
I am enclosing herewith the notification of the revised minimum basic wage of Haryana w.e.f. 1st April 2009 for your reference.
Regards,
Pankaj Chandan
From India, New delhi
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I am enclosing herewith the notification of the revised minimum basic wage of Haryana w.e.f. 1st April 2009 for your reference.
Regards,
Pankaj Chandan
From India, New delhi
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Dear Naveen,
Kindly check for the circular issued by RPFC, Faridabad, Ref. No. PA/RC(II)/Misc./05/6856 dated 04.01.2006 for the mentioned changes regarding the deduction of EPF on Minimum Wages in Haryana.
Thanks,
Mikky Vij
From India, New Delhi
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Kindly check for the circular issued by RPFC, Faridabad, Ref. No. PA/RC(II)/Misc./05/6856 dated 04.01.2006 for the mentioned changes regarding the deduction of EPF on Minimum Wages in Haryana.
Thanks,
Mikky Vij
From India, New Delhi
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dear pls find attach letter of regional office gurgaon. tks j s malik
From India, Delhi
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From India, Delhi
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Thanks a lot Mr. Malik, The notification is for Haryana but iam talking about the relexation of 5% in Himachal Pradesh there is relexation of 5% to Bifurcate the min wage. Regs Naveen
From India, Mumbai
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From India, Mumbai
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But sir, you have provided the minimum wages. I want to know if there is a rule that we have to put 12% of the minimum wage as PF. For Punjab, as per government minimum wage is 3594 for unskilled workers, and my minimum wage can be Basic + DA + HRA. However, PF is to be calculated on Basic only. So, is it okay if my PF is based on 1400 rupees, which is the Basic in that minimum wage of 3594? I hope you understand my question.
From India, Mumbai
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From India, Mumbai
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So far as the EPF is concerned, the contribution by both the employer and employee is based on the minimum wages. The minimum wages include basic pay + dearness allowance. This can be a single component or in two components (i.e., minimum basic + DA at the rate prescribed by the Labour Department of the State Government). This is the correct position.
S. Krishnamoorthy
From United States, Roslindale
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S. Krishnamoorthy
From United States, Roslindale
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(Fact Checked)-The user reply is correct regarding EPF contributions being based on minimum wages including basic pay + dearness allowance. This aligns with the law. (1 Acknowledge point)
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CAN SOMEBODY PROVIDE THE COPY OF THE CASE , J.M.A. Industries Ltd. V/s R.P.F. Commissioner, Faridabad REGARDING DEDUCTION OF PF ON MINIMUM WAGES AMOUNT.
From India, Delhi
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From India, Delhi
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Malik sir,
I have the same query. If we are paying the gross wages more than the minimum wages and we are deducting the EPF on a lower amount than the minimum wages. One of my lawyers advised me, it is okay because we are paying more than the minimum wages. However, after observing the Group Four circular, I felt it was wrong. Is it okay? Please advise.
Regards,
VP
From India, Noida
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I have the same query. If we are paying the gross wages more than the minimum wages and we are deducting the EPF on a lower amount than the minimum wages. One of my lawyers advised me, it is okay because we are paying more than the minimum wages. However, after observing the Group Four circular, I felt it was wrong. Is it okay? Please advise.
Regards,
VP
From India, Noida
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[QUOTE=vikramlamhe;689446]CAN SOMEBODY PROVIDE THE COPY OF THE CASE, J.M.A. Industries Ltd. V/s R.P.F. Commissioner, Faridabad REGARDING DEDUCTION OF PF ON MINIMUM WAGES AMOUNT.
Dear,
You can have the copy of the JMA Ltd. case at the following link: https://www.citehr.com/32490-bifurca...mum-wages.html
Regards
From India, Ludhiana
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Dear,
You can have the copy of the JMA Ltd. case at the following link: https://www.citehr.com/32490-bifurca...mum-wages.html
Regards
From India, Ludhiana
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Dear Vidhi What are you trying to say It seems that something went wrong with your key board.
From India, Ludhiana
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From India, Ludhiana
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Can anybody provide me with any decision references from a high court or a supreme court? The internal guidelines of the PFD department do not hold the force of law. There is no specific reference to the payment of PF on minimum wages in the PF Act. An internal guideline by a CPFO or a High Court judgment (enforceable only in that state) or a Supreme Court judgment will be applicable to the Union of India. Can somebody share a copy of the Group 4 judgment and its current status? Is the matter in the Supreme Court, or has there been a judgment from the Supreme Court on this? All PF inspectors claim that there is an internal guideline to pay PF on minimum wages, but no one has shown me any guidelines. Can anybody help with the present status – internal guidelines by CPFO or a court judgment on this?
From India, New Delhi
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From India, New Delhi
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As in Himachal, we can change only 5% of the minimum wage, it means 95% of the minimum wage has to be kept as basic. Please confirm the same in Punjab & Haryana.
Regs, Naveen
Mr. Naveen, can you please attach the relevant circular of the PF department in this regard, since they are the competent authority.
Narayanan
From India, Madras
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Regs, Naveen
Mr. Naveen, can you please attach the relevant circular of the PF department in this regard, since they are the competent authority.
Narayanan
From India, Madras
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Mr. Naveen, could you please attach the relevant circular of the PF department in this regard, as they are the competent authority...
Narayanan
Dear Narayanan,
Could you please forward me the details of the notification of H.P. Govt. allowing a 5% change in the minimum wages fixed.
Further, I have gone through the matter in Punjab and have seen that there is no such provision in the notifications issued by the Punjab Govt on minimum wages. The notifications are silent on whether 5% or the whole of the minimum wages can be structured in such a way that the employee's take-home salary is never less than the prescribed minimum.
I can inform you that the Hon'ble High Court of Punjab and Haryana has admitted the writ filed by an employer and has stayed the operation of the impugned order passed by the labor authorities who were demanding the difference in minimum wages, where the basic wage was less than the MW, but the take-home pay was more than the MW fixed.
Furthermore, I have also come across the verdict of the EPF Appellate Tribunal setting aside the order of the 7-A authority demanding PF on minimum wages rather than on the basic wages. I am attaching the extract of the journal from the 2009 LLR 233.
Regards
From India, Ludhiana
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Narayanan
Dear Narayanan,
Could you please forward me the details of the notification of H.P. Govt. allowing a 5% change in the minimum wages fixed.
Further, I have gone through the matter in Punjab and have seen that there is no such provision in the notifications issued by the Punjab Govt on minimum wages. The notifications are silent on whether 5% or the whole of the minimum wages can be structured in such a way that the employee's take-home salary is never less than the prescribed minimum.
I can inform you that the Hon'ble High Court of Punjab and Haryana has admitted the writ filed by an employer and has stayed the operation of the impugned order passed by the labor authorities who were demanding the difference in minimum wages, where the basic wage was less than the MW, but the take-home pay was more than the MW fixed.
Furthermore, I have also come across the verdict of the EPF Appellate Tribunal setting aside the order of the 7-A authority demanding PF on minimum wages rather than on the basic wages. I am attaching the extract of the journal from the 2009 LLR 233.
Regards
From India, Ludhiana
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The user reply contains accurate information regarding the situation in Punjab and Haryana with regards to minimum wages and PF regulations. (1 Acknowledge point)
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Dear All Please find the attached file contains Clarification of bifurcation by Labour Office to EPF Office Himachal . Regs Naveen
From India, Mumbai
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From India, Mumbai
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Hi all, Can you pls share me the Attested & Revised Minimum Wages Notification W.e.f. 01.11.2015. Regards, Surender Kuamr
From India, Haldwani
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From India, Haldwani
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Dear Naveen Talogta Ji, Can your please share any Notification/Amendment/Gazette related to the splitting of Minimum wages into 95% of Basic & 5% of HRA in Himachal Pradesh. Regards, Harpreet
From India, Chandigarh
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From India, Chandigarh
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Dear Experts,
One employee joined the institution on a consolidated salary of Rs. 10,000 during 2015 and was a member of EPF. Later, his salary increased to Rs. 17,000 during November 2021 (but his service is purely on a contractual basis with yearly renewal by giving one day break). Can the employee be removed from EPF membership? Please explain.
Thank you.
From India, New Delhi
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One employee joined the institution on a consolidated salary of Rs. 10,000 during 2015 and was a member of EPF. Later, his salary increased to Rs. 17,000 during November 2021 (but his service is purely on a contractual basis with yearly renewal by giving one day break). Can the employee be removed from EPF membership? Please explain.
Thank you.
From India, New Delhi
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(Fact Checked)-The employee cannot remove himself from EPF membership. EPF membership is mandatory for employees earning below the specified threshold. (1 Acknowledge point)
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EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf
Splitting of Minimum Wages for the purpose of PF contribution not permissible.doc x
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(Fact Checked)-The user reply is correct. Thank you for providing accurate information. (1 Acknowledge point)