As per the act, Employer contribution on PF has to be calculated on Minimum Wage ceiling. Minimum wage ceiling has been increased from Rs.6500 to Rs.15000. As per the Supreme court judgement, PF to be contributed on basic wages including the variable allowance.
Say for Eg, Employee Basic salary + Allowance is Rs. 5000(Whether PF to be contributed on Rs.5000 or Rs.6,500)
Employee Basic salary + Allowance is Rs. 12,000(Whether PF to be contributed on Rs.12,000 or Rs.15,000)
If u have any notification with reference to this kindly forward the same
Thanks in advance.
The PF should be calculated for the wages fixed by the employer.
For assistance in Labour compliance you can contact our expert team on 7708907021.
Sr.Consultant (Labour Law)