Understanding PF Deductions: Are They Taken from Minimum Wage and What Are the Rules?

Dear all,

1. Is there any notification regarding whether PF is deducted from the minimum wage, or else the company will be listed as a defaulter?
2. Is there any notification available stating that basic wages are fixed at a certain percentage of the total salary?

Please advise and send the notification.

Best Regards,
BP JAMLOKI

Hi,

My name is Mukesh Sharma. Main WLC India Ltd, Jaipur mein job karta hoon. Aur pichhle 2 saal se mera PF deduct ho raha hai, lekin mere paas PF department ki koi receipt nahi aayi hai. Main yeh jaanna chahta hoon ki ab tak mere account mein kitna amount jama ho gaya hai. My PF Account No. is DL-27308-176, mera email id hai mukesh@wiganindia.org, mukesh_pj@yahoo.co.in, aur mera mobile number hai 09252444405. Kripya aap mujhe bataye ki main kaise apna amount pata kar sakta hoon, kya sach mein mera amount cut ho raha hai ya nahi. Kripya mujhe guide kijiye.

Thank you.

Dear Jamloki,

Notifications for the same are not issued. However, as per the decision given by the Gujarat High Court in the case of Gujarat Cypromet Ltd Vs APFC, salary for PF means salary as per minimum wages. Just to avoid higher PF deduction, a breakup of salary showing lesser Basic is not allowed. Regional PF offices are also directed by the Head Office to assess the dues under section 7A of the PF Act, considering the salary as per the minimum wages of that state where the establishment exists.

It is, therefore, advisable to deduct PF on minimum wages only.

Regards,
Sachin

There is a fixed minimum wage according to the category of the worker, which includes skilled, semi-skilled, and unskilled workers. Minimum wages are fixed based on these categories. For unskilled workers, the basic wage is 3130. For semi-skilled workers, an additional 150 is added, and for skilled workers, another 150 is added. Every year, there is a change of Rs. 4 to 5 in the basic wage.

You can contact the minimum wages office to obtain the necessary details. Provident Fund (PF) is applicable, so you have to deduct it.

Christian Robins :-P

PF deduction is made on Basic + DA + Food concessional allowances if paid in cash only. Whereas, as far as minimum wages are concerned, there will be only Basic and VDA, i.e., DA, so PF has to be deducted on the full amount of minimum wages.

Ayaz 9916611150

Mr. Mukesh Sharma,

You can write a letter to the Assistant PF Commissioner of Delhi and submit the same by hand only to get an acknowledgment of the letter submitted. In your letter, you should state all the points you have mentioned above and ask for a reply within 15 days. If you don't receive a response, write a letter to the Vigilance Officer for the same and send it through registered AD.

Ayaz
9916611150

Dear Mukesh,

In Maharashtra state, Minimum Wages change twice a year. One change is effective from January of every year, and the other is in July. PF is deducted on Basic + D.A. of the salary. Notifications are typically received from the Labour Commissioner's Office on the 5th of February and the 5th of August each year. The Minimum Wages change depending on the kind of industry you are working in, such as a Jewellery Company or Pharma Company.

Please let me know if you need any further clarification.

Thank you.

In addition to the Basic and DA, if somebody is getting other payments in cash, will it be considered as a part of minimum wages for the purpose of compliance of Min Wages Act?

Regards,
Shailendra Singh

Where can we get any notification which states that the PF should be deducted on Minimum Wages? It is not clear from the book itself.

Ravi