Query
Is it possible to bifurcate the Minimum Wages to pay the PF Contribution or we have to take the minimum wage as Basic pay in case of calculating PF ?
9th October 2017 From India, Durgapur

PARTICIPATING IN DISCUSSION:
Natraj@sakthimanagement.com
Head - Outsourcing
Srinath Sai Ram
Hr Manager
Aniket Pathak
Sr. Officer Hr
Honeyanshi
Sr General Manager (hr And Admn)
+3 Others

you can not bifurcate Minimum Wages.Please furnish details your proposed bifurcation together with Minimum Wages Notification.Please also inform the impact of Bifurcation of Minimum Wages on PF Contribution
9th October 2017 From India, New Delhi

Minimum wages are already minimum. If you split them, what will be the saving. There is proverb in Marathi: Don't carve your teeth to fill your stomach. Don't deprive poor guys of the minimum social security amount!
9th October 2017 From India, Mumbai

PF contribution should be deducted and paid on minimum wages as whole.
10th October 2017 From India, Pune

Dear Friend,
The answer to your posting is " N O ". Try to understand the "Rate of Wages" declared under minimum wages is only the basic, which can not be break into peices.
10th October 2017 From India, Mumbai

Dear Prabhat , Aniket, Shrikant, Shrinath.

Your contention on the splitting of Minimum Wages is otherwise as decided by SC in Airfreight Case.

Need your views on the Case decided by Apex Court.
11th October 2017 From India, Mumbai

Yes , rightly said Airfreight and Brigde &Brigde case quite clear this contention. On legal basis , wages defined under EPF act is differ from Minimum wages act...

R K Singh
Sr General Manager (HR&Admn)
Sel Manufacturing Co Ltd.
11th October 2017 From India, undefined

Dear Sir,
What are you suggesting?
11th October 2017 From India, Pune

Dear All
PFA copy of SC Judgement in Airfreight Ltd wherein the Hon'ble SC has held that MW has to be as per Sec 2 (h) of the Minimum Wages Act 1948. Since HRA is part of MW as per Sec 2 (h) of the Act (copy attached), we may have MW comprising of Basic, DA (as notified by the Govt) and HRA (upto 40% of the MW). PF Appellate Tribunal has also held that MW can be split for PF contribution as like Kerala HC (copies attached). We can split the MW and pay PF contribution till the final verdict of the Hon'ble Supreme Court. Regards.
N Nataraajhan, Sakthi Management Services (Hp : + 91 94835 17402 ; e-mail : )
11th October 2017 From India, Bangalore

Attached Files
File Type: pdf Airfreight - SC 1999.pdf (484.7 KB, 43 views)
File Type: pdf App Trbnl - Delight Services 2015.pdf (135.7 KB, 36 views)
File Type: pdf HC Ker - MW can be split (KRTILS) 2013.pdf (623.5 KB, 53 views)


The question was "is it possible to Bifurcate the Minimum wages to pay the PF Contribution"
Minimum Wages comprises of Basic+DA/VDA.Consequently, PF Contribution is payable on Basic+DA/VDA
Minimum Wages is notified by the appropriate Government.The vital question here is "Does Employer has right to alter Minimum Wages &split up in to other allowances to Subterfuge EPF Contribution.
Further, what is the objective of enactment of Minimum wages Act? to ensure bare Minimum Wages+EPF+BONUS+Gratuity
Bonus Act was amended recently by inserting"Bonus payable on Rs7,000/- or Applicable Minimum Wages, which ever is higher.
We all have social responsibility also apart from educating forum members.keeping that in view, i still hold that, we can not suggest splitting of Minimum wages for the purpose of Reducing EPF Contribution which is the only Retirement Fund for Private Security Employees
11th October 2017 From India, New Delhi


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