Industrial Relations And Labour Laws
Sr. Hr Executive
Srinath Sai Ram
Hr Manager
Hr Manager
Shefali Chauhan
Hr Executive
+2 Others

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Dear All, Skilled worker minimum wage in Delhi is Rs.622 per day , a worker work in a month 13 day and company pay wages is Rs. 900 per day but it divided into some part like ( Basic 550 + HRA 150 + Other Allo 200 ) = 900. PF deduct only 550*12% = 66 is it correct pls guide me
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PF is payable only on Basic pay as 'basic wages' under the EPF Act excludes DA,HRA,OT allowance, bonus or any other similar allowances.

Dear Prabhat,
As rightly commented by Mohan Kumar, PF will be deducted only on basic. But, Basic should be minimum Basic+DA prescribed under state minimum wages Act.
Dear Mr Singh, if you are paying only Minimum Wages as prescribed under Minimum Wages Notification, you have to pay EPF Contribution on MW.But, you are paying more than Minimum Wages.Consequently, you have split Minimum Wages by adding other Components. hence,you are liable to pay EPF Contribution on Basic i.e Rs550/- PER DAY
Dear Srinath Sir,
Means if minimum payable wage per day is less than the per day wage , then how will we calculate EPF.
Means in that case EPF will be calculated by taking MW as base or something else pls guide with example
PF Should be deducted @12% on the actual wages earned by the Employee.Wages means Basic+DA+VDA
Thanks to all for yr valuable suggestion .
Manoj Kumar is Saying PF deduction = 12% of Basic only
Sainath Sai Ram is saying PF deduction = 12% of Basic+DA+VDA
What the great confusion is being created
Singh Prabhat is saying Thank You for valued suggestion
Dear HR Professional,
Please note that Employee share of EPF Contribution @12%
EPF Wages means:Basic, DA & VDA.EPF Contribution is payable on EPF Wages only & not on other components.Please update your knowledge in statutory matters before commenting.For your kind information i am qualified & experienced HR Professional with proven track record
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