Fixation Of Basic For The Purpose Of Provident Fund - CiteHR
Ravi5554
Asst.manager -hr
Apex Management
Labour Laws Consultants
Pramodthakar
Taxation And Hr
+3 Others

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Dear All,
Is there any provision for fixing basic pay of the employee whose gross is more than Rs 10000 per month.Now a days it has come to our notice that PF enforcement officers are asking to fix basic pay of employee at least to 6500 of gross 10000 so that employee can avail maximum benefits.Is there any legal provision or court judgment on it. Please share on urgent basis.
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Hi, At Present there is no such rule Amended, Now you can fix your basic as per your covinint but don’t forget that basic is fully taxable so take always basic less than 40% on gross.
Basic salary must be 40 to 50% of the gross salary...........if gross salary is Rs.10000 and below.........then basic salary must be atleast minimum wages of that states.....current now gurgaon minimum wages is 5547/-.
PF will deduct on basic salary.........if basic salary is more than Rs.6500/- then employer is not bound to deduct pf for those employees whose basic salary is more than 6500/-
if employer wish then he can deduct pf on actual basic or Rs.6500 i.e PF Basic salary.
Dear all,
An enforcement Office of EPFO can not force for fixing basic wage up to the ceiling limits i.e. Rs.6500/- PM. The management is at liberty either pay the whole amount as basic or bifurcated into certain allowances keeping in view of the taxation part as well. However, the allowances should be justifiable by way of nature and amounts.
However, since the minimum wages act is subject matter of the States concerned which is need based minimum wage and is not allowed to be bifurcated into certain allowances those are not included into the definition of minimum wage i.e. other than basic, DA & HRA.
P K Sharma
Basic should be at least as per Minimum Wages act. If it is less than that and even though the Gross salary equal or more than MW act, Employer would be defaulter under the M.W.Act. It may turn in to difference liability, since it is technical issue.
Dear Seniors,
If an employee salary as per minimum wages for example (Basic,Spl Allowance,HRA,Conv Allowance,Medical Allowance)=15000/-
If an employee absent 12-13 days in a month.Then his salary would be less then Minimum Wages.Can we show employee less basic,spl allowance,HRA,Conv Allowance,Medical Allowance.
Is it legally right.
Please guide me
Thanks & Regards
Jagdish
Dear Jagdish,
Pl. note here we are discussing on the RATE OF SALARY - STRUCTURE OF SALARY.
Your query is related to Earn salary. Obviously when There is a without pay leaves, his earnings will get affected.
Dear Pramod, Is minimum wage applicable for the white collar employee.
Yes, it is applicable to all the employees, irrespective of grade.
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