2Respected Seniors,
Good Morning,
I need your little attention from your valuable time.
Many times i have heard that Basic for PF calculation is depended on Minimum Wages declared by respective state government. My question is can we bifurcate minimum wages further in Basic+HRA+Spl. Allw.
For eg. If Min. Wage = 6000/-
Now can we decide Basic = 4000/-, HRA = 1000/-, Spl. Allw. = 1000/-
and can we calculate PF on 4000/- i.e. (4000 x 12%) = 480/-
Your valuable guidance can clear confusion in my mind.
With Warm Regards,
Vikas Sharma
Asst. Manager - HR
(M) - 90410-81606
From India, Delhi
Mr. Vikas Sharma we can bifricate minimum wage but the epf is calculated on minimum wage i.e on 6000 it will be 12% of 6000 not of 4000.that basic can be used for paying bonus or for calculating gratutity
From India, Delhi
From India, Delhi
In Minimum Wages also the Basic and Other Allowances are mentioned, so the basic pay should not be less than the basic pay mentioned in MWA. Seniors do correct me if I am wrong.
From India, Ahmadabad
From India, Ahmadabad
Dear All,
As per MWA the gross rate should tally with the prescribed rate of MW, i.e. Bas+Spl.All.
Therefore, the if the MW (Bas+SA) is Rs. 6000/-, then the gross rate should not be less than 6000/-.
Further, bifurcation can be done, as Basic=4000; HRA=1000 & Convy=1000 etc.
PF authority cannot enforce that the Basic should be as per the Basic prescribed under MWA. Because MWA itself is silent on the subject. It is no where mentioned in the Act that your Basic or SA should be as per the Basic or SA, prescribed by the State Lab office. Punjab&Haryana, HC, has rejected their (RFPC) plea to include the components, such as HRA, Covy All, Wash All, Bonu, etc.
Regards,
Rizwan Sothe
From India, Mumbai
As per MWA the gross rate should tally with the prescribed rate of MW, i.e. Bas+Spl.All.
Therefore, the if the MW (Bas+SA) is Rs. 6000/-, then the gross rate should not be less than 6000/-.
Further, bifurcation can be done, as Basic=4000; HRA=1000 & Convy=1000 etc.
PF authority cannot enforce that the Basic should be as per the Basic prescribed under MWA. Because MWA itself is silent on the subject. It is no where mentioned in the Act that your Basic or SA should be as per the Basic or SA, prescribed by the State Lab office. Punjab&Haryana, HC, has rejected their (RFPC) plea to include the components, such as HRA, Covy All, Wash All, Bonu, etc.
Regards,
Rizwan Sothe
From India, Mumbai
The state govt can fix MW in following ways,
1Basic plus DA or,
2.Basic with or without DA plus cash value of items or,
3.All inclusive rate allowing for basic,DA and cash value.
pl check in which way your state has fixed the MW.Then arrive the basic.For PF recovery basic alone is not considered.
Varghese Mathew.
09961266966
From India, Thiruvananthapuram
1Basic plus DA or,
2.Basic with or without DA plus cash value of items or,
3.All inclusive rate allowing for basic,DA and cash value.
pl check in which way your state has fixed the MW.Then arrive the basic.For PF recovery basic alone is not considered.
Varghese Mathew.
09961266966
From India, Thiruvananthapuram
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Minimum wages- Basic.pdf