Supreme Court Ruling Pf Deduction On Minimum Wages

Dear friends,

Could anybody provide me with the ruling of PF deduction on minimum wages given by the Supreme Court? I have heard from the PF authority that the SC has ruled that minimum wages cannot be bifurcated. If someone has a copy of that ruling, please email it to me to enable me to act accordingly.

Dear Readers,

My factory is 12 km far away from ESI Dispensary, and ESI is applicable to our factory. What is the area limitation of the ESI dispensary? Please help me out.

Dear Sir,

Please tell me about the bifurcation of minimum wages. Can the minimum wages be bifurcated into allowances such as HRA, etc.? If yes, up to what %?

Dear Ashwani,

The minimum wages consist of only Basic and DA as per the minimum wages notification. There are two components: Basic and Dearness Allowance.

If the gross salary exceeds the minimum wages, then you can bifurcate it into other allowances such as HRA, Conveyance, etc. However, we cannot bifurcate solely to reduce management liability on statutory payments.

I hope this clarifies things for you.

In Himachal Pradesh, there is no provision for components in the minimum wages notification. The minimum wage for unskilled workers in Himachal Pradesh is Rs. 5100 per month. In this scenario, can we further break down the Rs. 5100 into components like Dearness Allowance (D.A.), House Rent Allowance (HRA), etc.?

Respected All,

According to the notification from the Delhi Government, the wages being referred to (16858, 18322) are higher than the PF wages being referred to (15000). Please advise me on which wages the PF should be calculated.

Thank you.

Hi Giri,

You can restrict PF deduction to ₹15,000.