Can I Split Minimum Wages for PF Deductions Without Facing Issues? Seeking Advice!

Hi,

Can anyone tell me whether I can bifurcate minimum wages into 2 parts like Basic = 67% and HRA = 33% and deduct PF on Basic wages? I am doubtful that the PF officials can force me to deposit the dues on the full minimum wages. Please help.

Dear Ashish,

What you are doing is correct; nothing to worry about. You need not pay PF on the entire minimum wages. The MW act states that wage = basic + DA + HRA. Whereas, the PF act defines wage = basic + DA + value of food concession + retaining allowance. Have you found any HRA component in the PF wage? Therefore, you need not do so.

Thank you.