Head - Outsourcing
Vice President (hr&ir)
Aniket Pathak
Sr. Officer Hr
Hr & Administration Manager
Srinath Sai Ram
Hr Manager
+2 Others

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 ?
From India, Durgapur

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
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!
From India, Mumbai
PF contribution should be deducted and paid on minimum wages as whole.
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.
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.
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.
From India, undefined
Dear Sir,
What are you suggesting?
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 : )
From India, Bangalore

Attached Files
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File Type: pdf Airfreight - SC 1999.pdf (484.7 KB, 58 views)
File Type: pdf App Trbnl - Delight Services 2015.pdf (135.7 KB, 49 views)
File Type: pdf HC Ker - MW can be split (KRTILS) 2013.pdf (623.5 KB, 67 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
From India, New Delhi
I agree with both the seniors but i want to ask that what if HRA act is applicable separately to the state then there is no question of considering HRA in minimum wages. Also PF should be deducted on Basic + DA. But in some cases I have seen that, Employers are bifurcating the Basic to lessen the PF liability although they are paying well above the minimum wages but, under the head of washing allowance, Heat Allowance, or canteen allowance. this surely reduce the pf liability on them. When asked about the legality of this practice they told that they have the approval letter of local Labour Commissioner.
Ex. If Basic Min wage is 7000 then, 5000 as basic & 2000 as allowances.
Can this be done?
From India, Pune
"they have the approval letter of local Labour Commissioner".-Labour Commissioner is not the Competent Authority as per the Minimum Wages Act.Can you pleas upload the quoted Document, for understanding
From India, New Delhi
No i cant case is not of my company.
From India, Pune
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