Splitting Of Minimum Wages For The Purpose Of PF Contribution Not Permissible. - CiteHR
Pbskumar2006
General Manager-hr
Sumitk.saxena
Service/manager-hr
Natraj@sakthimanagement.com
Head - Outsourcing
JAWEDALAM
Ir & Contract Labour Management
Rajanassociates
Legal Counsel
V. Balaji
Ir & Hr
Pulipaka_ramarao
Manager - Hr & Ir
Ratikanta
Asst Manager Hr
Munnabhai1971
Sr.executive Hr
Jaykumtekar
Industrial Relations

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Dear Friends..
Enclosed find a clarification given by the Add. Central PF Commissioner i.r.o PF contribution on Minimum Wages and clearly instructed employer not to splitt Minimum Wages for the purpose of PF Contribution.
Regards.
Jawed Alam.

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Hi Jawed, Excellent information. I was eagerly waiting for the same as the matter was subjudice in the court of law. I thank you for posting the circular on CITEHR. Thanks. Jaikishen
Dear Jawed ji, Here is a 'Editor’s Voice' on the Splitting of Minimum Wages for the purpose of PF. Regards, PBS KUMAR

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File Type: pdf SKIPPING or SPLITTING OF MINIMUM WAGES.pdf (16.9 KB, 1586 views)

yes agreed with mr. jawed alam that bifurcation of minimum wages is not permitted, as earlier i also stated in all my previous posting.secondly mr. alam we also residise in the same place where u r right now i.e bhojudih coal washery.
thanks & regards,
from,
sumit kumar saxena,
9899669071, 0120-4131277
Thanks Sir, This is a valuable documents to defend against the mal practices being implemented by the contractors to reduce the EPF contribution of labour regards Rajiv Kaushesh Patiala Pb.
Can i know the minimum wages amount that need to be paid to employees and what all compenents to be shown as minimum wages ? Please help me out in this issue. ?
Dear sajit,
Greetings for the day,
The component of minimum wage is basic+da/vda, excluded other allowances, secondly it was defined by state time to time,
sumit kumar saxena,
9899669071, 0120-4131277

Please refer the judgement of Punjab and Haryana High court CWP No. 15443 of 2009 (O and M)in the matter APFC GGN. Vs. M/s G4 Security Services-decided on 1st February 20011 where in very clearly defined that splitting of minimum wages as per definition of Minimum Wages Act is permissible.
In this regard the Labour Law Reporter Advocate Mr.H.L.Kumar has requested to Addl.Central P.F.Commissioner to do forward .
There is no confusion in interpretation,hence please study the both references and act freely.
Dear Mr.Javed,
You have posted and shared the most confusing matter about deduction of PF upon minimum wages.I too was always under hesitation about the deduction.Now I sincerely want to express my thanks in a lot way to you.Please keep posting such valuable circulars.
Mangesh Wakodkar
Sr.Executive HRD
Dear All.

Thanx for ur response and as Mr. Jaikishen mentioned as the matter was subjudice

in the court of law, the points on Splitting of Minimum Wages by the PF Authority had

been eagerly waiting for a long time by the HR Professionals. This became really more

complicated after the judgement in the case of Bridge & Roof Case and contractors use to cite this reference while splitting Minimum Wages. Thanx to Add. Central PF Commissioner and PF authority for restricting contractors/employers from split Minimum Wages.

Dear Sajit1980: There are mainly 3 components of Minimum Wages: 1. Basic

2. Dearnes Allowance.

3. House Rent Allowance.

Minimum Wages is fixed by the Joint/Labour Commissioner of every States in India

for different industry after taking into A/c of change in Consumer Price Index of

39 food grains items from the last CPI. Since the base year of calculating the Minimum

Wages is fixed by the Labour Department in the year 1960, it became much complicated to find out the exact portion of Basic, DA and HRA from a notified Minim Wages of Scedule Industries.

So when we talked about Minimum Wages payment, we mean Minimum Wages as lumpsum in a month of 26 days/lumpsum as piece rate and generaly we do not do segregating it in Basic, DA and HRA.

So w.r.t your question, You need to find out in which category of Industry your

company lies as per the list of Schedule Industry and get the minimum wages rate from that notified circular for the purpose of payment of Minimum Wages. and hence you will not be required to show different components of Minimum Wages seperately. You can refer <link no longer exists - removed> for details on how we arrived at Minimum Wages (CPI change)

Dear sumit kumar saxena: glad to know that you are from BCW, I have been there for few times but not for official purpose and my native place is also Purulia.

But I recently been transfered to Sagardighi Thermal Power Station (New Project of 500 MW X 2).Now you are working at Noida. So we will be sharing our limited knowledge on HR with each other. Thanx for ur reply.

Regards.

Jawed Alam
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