Thread Started by #SOUBHIK KUMAR GHOSH

Dear seniors
My question is , PF should be calculated on Basic , how do we ascertain Basic, whether it should be equal to Minimum Wages as per MW notification of the State , or employer can split the MW , one part for Basic other for DA/ Other allowance and PF deduction will be happened on Basic part. I have got one notification on 2011 May, same has been abeyance on 2011, December. Please advice.
16th May 2017 From India, Kolkata

Attached Files
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File Type: pdf PF - No Spliting in Min Wage.pdf (684.1 KB, 113 views)
File Type: pdf MW can be split -EPF App Trbnl 2015.pdf (129.1 KB, 119 views)
File Type: pdf PF circular December 2011 .pdf (207.2 KB, 112 views)

As the law of land exist today you can slit the minimum wages fixed by state govt. in different allowances and deduct PF contribution only on basic plus da as determined by you. this is as per punjab high court but the matter is before Supreme court.
18th May 2017 From India, Kanpur
Yes, that is correct , but if a contractor can split the MW in two parts for calculation of PF liability.
Say, the MW is 6000, Contractor split it in Basic 4000 + Other Allowances 2000 .
He is satisfying MW criteria , but in case of PF , the liability is calculated on 4000 X 12% . Contractor is taking the advantage of PF Act , noting is mentioned.
Regards
18th May 2017 From India, Kolkata
What your contractor is doing is legally permissible. However, he should show rs. 4000.00 as basic plus da
19th May 2017 From India, Kanpur
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