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Do you know section regarding not being a member of pf whose salary more than 6500 from DOJ? and another things is that is ESIC compulsory for construction company?
From India, Ahmadabad

I have 2 queries which I am facing on handling the housekeeping 3PL of my company.

1. The 3PL service provider divides the minimum wages into 60-40% breakup. 40% Basic+D.A and the rest 60% into HRA, Washing Allowance and Conveyance. The gross however, becomes a bit more than the min wages as mentioned in the minimum wages act in Bengal. And the 3PL say that since they are providing gross higher than the min wage they are dividing the same. When I asked why that is being done thay answered about a verdict of Supreme Court wherein it has been mentioned the same. However, when I have gone though the verdict and have not found any clear mention of the same. Please find the attachement of the verdict for ur ref.

2. My next query is regarding the bonus payment. Are we being the princeple employer supposed to pay the statutory bonus to the service provider? As per my findings if the same has been mentioned in the agreement then its fine otherwise this wont be paid by the princeple employer. My company dosent have any agrrement wid this company.About this they however could not provide any valid document as to why they are doing so except that other companies has agreed by the same.

Please respond on this issue!


Nivedita Mahapatra

From India, Delhi

Attached Files
File Type: pdf Court Judgement on Min. Wages break up.pdf (11.7 KB, 563 views)

Supreme court is highest authority for judicial purpose but amendment always done by passing it from both the houses
From India, New Delhi
Dear all
Pls find enclosed the Judgmentof karnatak High Court which resembels the above case. In this Matter HIgh Court opined that PF commissioner has power to see whether the Minimum Wages were bifurcaed with a view to subterfuge PF contribution and penalize the companies who adopt such practice
hope this will be useful

From United States

Attached Files
File Type: pdf Judgement on PF.pdf (101.5 KB, 311 views)

Dear Ashok,
I do agree with your comments. Lets Understand Minimum Wage , MW should be Basic & DA combination you cannt split MW in many parts. If MW comprises of Basic & DA than it automaticlly attracts PF on it.

From India, Chennai
Dear All Pls find enclosed the Judgment of Supreme Court stating that Minimum Wage is one packet of payment and cano/should not be bifurcated. regardsr ravi
From United States

Attached Files
File Type: pdf Supreme court judgment on bifurcation of PF.pdf (118.1 KB, 509 views)

Dear All,
In PF Act nothing is mentioned as minimum wages for the purposes of PF contribution. PF is deducted on basic + DA and the ceiling for such contribution is Rs 6500/-.
No judgement can automatically become a part of the Act unless the Act is amended incorporating the judgement.
Kalyan Mitra

From India, Calcutta
The PF contribution has to be paid on the minimum wages irrespective of the naming words
E.g. Basic, DA, HRA and so on.... However beyond minimum wages the PF may be voluntary contributed.

From India, Delhi
Hi Sunder, You are right so this makes clear that the PF has to be calculated on the minimum wages. This is what I had conveyed in my last post. Have a good day. Poonam
From India, Delhi
There is a circular from PF HO on splitting of wages for the purpose of pf purpose is not permissible vide circular No.Coord/4(6)/2003/clarification/vol-II/7394 dated 23.5.2011.
Ramalingeswara Rao'

From India, Secunderabad

Attached Files
File Type: pdf Circular_PF_MW_not-to-split_23 May 2011[1].pdf (682.3 KB, 161 views)

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