However, if the basic wages is low and the other part of salary, ie, HRA and Conveyance, are high then there will be an apprehension that there is an attempt on the part of employer to reduce his burden of Provident Fund contribution since it is from Basic salary alone that PF is deducted. Though Provident Fund Organisation is not empowered to enforce minimum wages, there is every chance of such linkage in a very short time.
26th October 2009 From India, Kannur
I am aware of this point but had this issue in our company, as we are paying over and above the minimum wages, i am not keen on changing the salary structure.
Anyone else can thorugh some light on this and if there is any judgement in favour of this, can it be helped with.
27th October 2009 From India, Mumbai