Pf Issues - Minimum Wages

Dear All Friends. I want to clarify whether it is compulsory that PF deduction will be made on the minimum wages. The wages can not be splited. The PF deptt. is directing that minimum wages can not be bifurcated in various heads. PF deductions will be done on minimum wages. Are there any orders have been passed by any court. Please provide me the same. Thanks & Regards Sheetal Gupta [Login to view]

Dear Sheetal, To my knowledge PF Deductions are to be made on minimum wages with out any sort of bifurcation.

Priyanka is right. PF deductions are to be made on minimum wages and minimum wages can not be bifurcated as per rules. Regards, Sivadasan

Hi guys, I think you all talking about the PF deduction only. PF deducted only on BA & DA or Spl. Allow. Minimum wages act. said that, As an employer they have to pay minimum BA & DA to employees as per mentioned in minimum Wages Act. The Minimum BA & DA or Spl. allow. shall not split in other component, but, if it is more than M.W. so, there can be split the rest amount in other component of salary or wages. If any employer paying more that minimum wages so, employer have to deduct the PF on that particular BA & DA or Spl. Allow, Whatever has decided by that organization. Regards,

Dear Freinds, I have a doubt. what si the minimum amount of BA and DA as per Minimum wages act. If we pay an employee Rs.4000 (Gross) where his minimum wages comes to 1200 and we deduct PF on that amount. IS that correct. Please advise I am from Chennai. Hope the amounts mentioned in PF act and minimum wages act are one and the same throughout India. Please clarify G Priya

Priya, In case the salary is more than the minimum wages for a particular employe then it can be bifurcated in parts. The deduction will happen on the Basic + DA in that case. Thanks

Dear Friend: You cannot check your PF status. there are two options: From PF website you can check the claim status of your refund. To know the yearly amount you should approach your finance department and can ask them for yearly PF slip which will be provided by PF department. However, the receipt provided will be an assurance for you that your PF amount is being deposited. However, the amount mentioned in that will not tally with your yearly deducted details. Because it depends upon the remittance of PF amount by your company every month. you might find a difference of one month amount of deduction. G Priya

Hi All, This is allowed as there is no clarity in the act with reference to Minimum Wages. Sometime back this matter was brought in Karnataka high court, which confirmed that breakup of Minimum wages can be done for PF purposes. But most important is what should be the aportion. As a General notion which is acceptable to PF authorities also, it should be in the ratio of 70:30. Hope I am able to clear my view. Regards Salil Sharma 99102 47001

The PF deductions are purely based on the Minimum wags set by the sate govt. and the bifurcation is also given by the PF office if you deviate from amount would be recoverd from your company for paying less PF. Thanx And Regards Sandeep Thakur H.R Eexecutive USV Limited Baddi ( H.P )

Minimum Wages Act and Employees' Provident Fund Act are two altogther independent acts and can not be clubbed together. It is not mandatory to fix basic of an employee at least those of Minimum Wages. So it is not necessary to deduct PF on minimum wages. Regards, Shabbir