Statutory Complaince/labour & Employment
Managing Director
+5 Others

Dear Sir,

Need your help on minimum wages, In UP Minimum wages from Apr12 are Rs100 Basic+74.14DA=Rs174.14 Per Day. It becomes 4528/ Per month. Accordingly Monthly Basic 2600+ 1928 as DA as per my understanding, Now if I fix 4550 per month for an unskilled worker and split it as 2900 Basic+ 1650 as other allowances( i.e.HRA & Conveyance). And take 2900 for PF calculation will it work.Can we split Minimum Wages in basic & Other Allcs.If we split then only basic will be taken for PF calculation . Plz advice on priority.
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Dear Ashok, Basic wages can be less than minimum wages. Dont split minimum wages into HRA and conveyance. Show as other allowances and deduct the PF on basic. Regards, E. T. Rao
Dear Ashok,
Greetings for the day,
As Mr. Rao stated that minimum wages can't be bifurcated it is true as far as epf deduction is concern the component should be (basic+da+food conc. if any) and minimum wages is component of basic +da so it can't be splitted or bifurcated.
thanks & Regards,
Sumit Kumar Saxena,
If you go through the definition of Minimum wages " the definition clearly says minimum wages includes HRA also" Therefore you can split the minimum wages only as per the following components: Basic, DA and HRA.
The Bombay High Court has ruled that the companies are bound to pay the prescribed minimum wages irrespective of how they calculate the wage component. -Arun Talwar
sri this is bhaskar . i don t no about salary bifurcation in pvt ltd companies and how much percentage take to basic wages,da,hra& other allowances.
Dear Ashok Minimum Wages can’t be bifurcated. As per Law, Basic + DA should be equal to Minimum wages on which PF needs to be deducted from employee salary
OK Minimum Wages can be bifurcated for the purpose of PF calculation and is legal. Stay Cool, Atom
In case of UP, the MW is equal to Basic + DA, both component are clearly stated under the MW notification. So in this if you will take on basic for the contribution of PF, then you shall be in problem and it will be amount o non complaince. Because PF contribution should be on Basic + DA or if any food concession.
Where there is no separate DA provided by the notificaiton under MW, in that case you can bifurcate.
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