Natraj@sakthimanagement.com
Head - Outsourcing
+3 Others

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Hi All,
Please Clarify Can We Split Minimum Wage And Pay The PF Contribution On Splitted Wages. For Example Minimum Wage Is 3500/- Can We Split 2000 As A PF Wage And Pay The Contribution. If Not Is There Any Section In PF Act Shows It Is Not Permissible.
Regards
Surendra

From India, Shadnagar
Basic wages cannot be less then minimum wage. This is a rule of labor law. Basic wages are the core of salary structure. They can never be less then minimum wage. Other components like DA, HRA are components to match the rising prices and inflation.

From India, Kolkata
Dear Mr Surendra
Usually most of the State Govts declare MW consisting of Basic and DA and definition of 'wages' under 2 (h) of the Min Wages Act includes HRA. There are many judgements which categorically held that MW could be split (pl see attachments).
Regards
N Nataraajhan, Sakthi Management Services (Hp : + 91 94835 17402 ; e-mail : )

From India, Bangalore

Attached Files
File Type: pdf Splitting of minimum wages for PF permitted - P&H HC 20.7.11.pdf (61.5 KB, 821 views)
File Type: pdf Delight Sevices - EPF Trbnl order 2015.pdf (670.3 KB, 342 views)
File Type: pdf Splitting Minimum Wages and PF Contribution on allowances.pdf (97.4 KB, 540 views)
File Type: pdf Splitting MW v Basic as defined under the EPF&MP Act 1952.pdf (289.8 KB, 474 views)

Dear all,
PF department had issued internal circular to ensure that employers were deducting PF on minimum wages but later on the circular was withdrawn as PF department is not empowered to enforce this.
Also definition of wages under the minimum wages act does not mention wages as consisting of basic & DA. This fact was used in famous case where the Supreme Court has not objected to splitting of minimum wages.
https://indiankanoon.org/doc/1146344/
As such you can split minimum wages so that the gross wages are at least equal to sum of basic wages & DA declared by the government from time to time. But be careful do not let the PF salary to be too low.

From India, Mumbai
Please clarify on PF Contribution for Senior Citizens
From India, Bangalore
Dear All
PFA copy of an important and interesting Judgement by Madras HC on splitting of Allowances for payment of PF contribution for information.
Regards
N Nataraajhan, Sakthi Management Services (E-mail : )

From India, Bangalore

Attached Files
File Type: pdf PF-Splitting of All - HC Mad 2018.pdf (674.2 KB, 194 views)

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