Bharat Gera
Principal Hr Consultant
Group Compliance Manager
Senior Manager/freelance Consultant
Personnel Management &ir
+1 Other

Thread Started by #D.T.CHOUDHARI

We are confused with so many contradictions appearing on the issue of - Splitting-up of minimum wages for purpose of computing PF contribution.
We are following a uniform wage structure for our unit wherein along with Basic pay +DA( 50% of gross pay ) other components in the form of allowances ( HRA,Con,Washing,LTA etc.) exist and a sum total of all this constitute gross wages of an individual employee and put togather it works out to more than notified minimum wages.
Are we justified in contributing PF on our basic + DA structure,which put togather is not touching the notified minimum wages but with allowances it crossing the notified minimum wages.
Cell no.- 7032107756
5th August 2017 From India, Adilabad
Dear Sir,
As per the latest supreme court verdict, EPFO do not have any authority to question or enforce the bifurgation of minium wages for any industry
Hence you are allowed to split minimum wages and proceed.
Hope this is clear now.
5th August 2017 From India, Coimbatore
When did supreme court has given any verdict? Do you have any copy of the judgement which can be provided. The case of EPFO V/S G4 securities is still pending in supreme court post which anything finally can be call upon. Till then the employer decide on what contribution they want to deduct PF. Generally 50% of basic is good to go from gross salary for deduction of PF but ensure the difference of basic vis a vis minimum wage would not be so high that it looks unacceptable, upto 20% is ok as per most of the industry standard.
6th August 2017 From India, New Delhi
Mr Ramesan
Can you please share the citation of the judgement with brief details.
With Warm Regards
Bharat Gera
HR Consultant
7th August 2017 From India, Thane
Dear Mr Choudhari,
This matter is before the Supreme court & the judgement is still awaited. Till then, Haryana High Court decision is binding on all which allows splitting of min wages for the purposes of PF contribution. However, Min wages can be split into components of Basic, DA, HRA & uniform washing. LTA or food allowance can not form part of min wages.
Basic + DA component should be at least 50 % of the notified min wage.
Anil Raina
Mob: 9810180148
7th August 2017 From India, Delhi
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2017 Cite.Co™