CTC Break Up To Save PF Cost - Ok As Per Minimum Wages Act? - CiteHR
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Hi, As per Notification of labour office (DA) the minimum wages (Maharashtra) amount for unskill labour ie basic 3600 + DA 3927 = 7527 + 5%HRA 376 = 7903
My question is if we are paying gross salary more than minimum wages ie. Rs.10000 but to save PF cost we are showing basic + DA = 7000 HRA 2800 Team Allowance 200
So need your advice whether is it ok as per minimum wages Act to follow the above salary structure.

It is not illegal as of now, but is is immoral for sure. Just check how little you will actually save. After all you are curtailing retiral benefit of who - unskilled worker. Think & then take decision.
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