Mr. Sumit,
Assume Minimum Wages in a particular state is Rs.5500/- ( a hypothetical figure OK?). You (we) are splitting this as
Basic : 2000/-
HRA : 1500/-
Conv : 800/-
CCA : 1200/-
Total : 5500/- and paying PF contribution of Rs.240/- p.m.
1. As per Punjab and Haryana High Court, THERE IS NOTHING WRONG IN DOING IT as above. Please see my attachment now (previous judgment), and the recent judgment in my previous post.
2. Also see other judgements of Madhya Pradesh (attached now) and Madras High courts (this is voluminuous and will send later)
3. See the chrolonogical order
Punjab and Haryana High Court judgement - favouring employer - 01/02/2011
Madras High Court favouring EPFO - 07/06/2011
Madhya Pradesh High Court - favouring EPFO - 21/06/2011
Punjab and Haryana High Court - favouing employer - 20/07/2011
You wound understand there is a huge confusion in the orders itself. You go through the same and come back to me.
Balaji