if notified Minimum Wages is Rs 8500, you can take it as basic salary. But this does not mean that you can pay PF on that salary. Whatever is agreed with the employee as payable is the salary for PF contribution. If you have hired an employee for a monthly salary of Rs 20000 and this is the amount that he will get if, during the month, he takes a few days' casual leaves or if this is the amount on which the loss of pay for the days he remained on leave without pay is deducted, PF should be deducted on this Rs 20000. However, since there is a capping of PF wages to Rs 15000, you can treat Rs 15000 as PF qualifying salary.