Rajanassociates
Legal Counsel
Chandan2ykpankaj
Manager - Hr
[email protected]
Sme-hr & Employment Laws
V. Balaji
Ir & Hr
Trisha_hr
Director, Target Hr Solutions
Sanagapalli
Labour Laws And Financial Matters
Mradul_bhatnagar
Senior Hr Executive
Crnehete
Service
+1 Other

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Dear All,
1)Can anybody tell me whether we can split the minimum wage into various components like HRA or Spl. Aloowance other than Basic +DA, if yes then may i have a supporting to justify the same?
2) If we give salary slightly more then minimum wage, even then Are we supposed to put the amount equivalent to minimum wage in Basic +DA or can v split it as per our company policy.
Please provide me the necessary supporting notifications for the aforesaid query and also please provide me the Government notification copy of Minimum Wage for Delhi, Haryana and Noida.
Regards,
MKK

From India, Gurgaon
Dear Friend
Greetings.
As per PF Act, PF has to recover from basic + DA salary which shall not be less than the minimum wages prescribed under various states for different employment.
Hence a employee whether a contract employee or casual employee or a permanent employee PF Contn has to recover for a minimum wages which is precribed for scheduled employment.
Cheers
Trisha
HR Professional

From India, New Delhi
Dear Trisha,
Thanks alot for the information. May i have a clause no. as per act or any other documented proof to justify the same.
Also please provide the MW notification copy for Delhi, Haryana and UP.
Regards,
MKK :icon1:

From India, Gurgaon
Hi All,
48 Views......!!!! No reply...!!! Why what happened to all you guys...
May i have the circular copy where it is stated that PF has to be deducted on Minimum wages at least...
Regards,
Manishi K. Kapil

From India, Gurgaon
hi, you can search on internet for the labour department site for your region/state and you will surely get the same.
From India, Bhopal
Hi I am also not get the copy of the notification which says that pf will be deducted on the minimum wages. Pls send the link or copy of the same
From India, Gurgaon
Dear MKK,
This is very interesting situation and members should genuinely contribute.
My views are;
* There is no mention in PFable salary (Basic+DA) should not less than Minimum wages
* Organisation if paying above minimum wages (even if Rs.1 more than M.W) can birfurcate wages as per wish. (As per Judgement of Hon.supreme Court)
* PF Act enforce us to comply on Basic +DA.
Regards,
ACCHR

From India, Mumbai
Dear Friends,
As per my knowledge, if the Employee is drawing salary (Basic+DA) less than Rs. 6500/- then the other salary components like Medical Allowance, Conveyance Allowance, Lunch allowance and any other allowance would also be considered at least upto Rs. 6500/-(except HRA, OT, Bonus, LTA, Commission and other similar allowances) for Provident Fund deduction.
Ex.
Mr. X's salary sturcture & Deductions
SALARY STRUCTURE 1 SALARY STRUCTURE 2 SALARY STRUC 3
Basic 3500 5000 5000
DA 1000 2000 2000
Conveyance All 800 800 800
Education All 200 200 200
Medical All 900 900 900
HRA 1650 1650 1650
Monthly Gross 8050 10550 10550
Provident Fund 768 840 780
ESIC 141 000 000
PT 175 200 200
Total Deduction 1084 1040 980
Net Payalbe 6966 9510 9570
FPF CONT 533 541 541
The calculation of above 3 salary structure is correct as per my knowledge.
Regards,
Chetan Nehete
9819587485


Dear Chetan,
I think the question is not properly undertood. Question is not on maximum celeing under PF Act but it is on salary to be considered for PF deduction w.r.t Minimum Wages Act.Once again I reproduce the question as under;
1)Can anybody tell me whether we can split the minimum wage into various components like HRA or Spl. Aloowance other than Basic +DA, if yes then may i have a supporting to justify the same?
2) If we give salary slightly more then minimum wage, even then Are we supposed to put the amount equivalent to minimum wage in Basic +DA or can v split it as per our company policy.

Views of mine is also appended above. Kindly refer.
Other members are requsetd to contribute as there are diffrent views from different agencies including Legal Councellor. As a matter of fact we are facing this kind of situation while dealing with PF authority as they enforce company to comoply PF deduction on atleast mininum wages.
Regards,
ACCHR

From India, Mumbai
Dear Manishi,
as per my knowledge you cannot spilt the minimum wages beacuse as per EPF Act you have to deduct p.f on minimum wages. So you have to show basic+D.A atleast minimum wages.
Thanks
(Sahil)

From India, Delhi

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