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
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
Ex. If Basic Min wage is 7000 then, 5000 as basic & 2000 as allowances.
Can this be done?
From India, Pune