My question is what should be Basic Salary . Is Basic salary should be equal to minimum wages ?
Is Basic Salary should be any percentage of Gross Salary.
As per the Minimum wages fixation rule -'minimum wage'. These norms consist of: (i) three consumption units for one wage earner without incorporating the earnings of women, children and adolescents; (ii) a minimum food requirement of 2,700 calories per adult person per day1 ; (iii) clothing requirements at 72 yards per annum for an average working family of four; (iv) a house rent corresponding to the minimum area provided for under the Government's Industrial Housing Scheme; and (v) 20 per cent of total minimum wage for fuel, lighting and other miscellaneous items .
As per the Basic wages definition under EPF Act - “Basic wages” means all emoluments which are earned by an employee while on duty or 3 [on leave or on holidays with wages in either case] in accordance with the terms of the contract of employment and which are paid or payable in cash to him,
but does not include- (i) The cash value of any food concession; (ii) Any dearness allowance (that is to say, all cash payments by whatever name called paid to an employees on account of a rise in the cost of living), house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment. (iii) any presents made by the employer.
Contradiction – My doubt is under fixation method of Minimum wages expense on house rent is also consider but in the definition of EPF Act House rent allowance is not consider . In this scenario how Basic wages under EPF equal to minimum wages .
Please advise what should we do for Fixation of Basic wages for PF Purpose .
9210695698 3rd May 2019 From India, Delhi