Understanding PF Deductions: How Much Will Be Taken from a Rs. 6000 Wage?

As per the Minimum Wages Act, the Basic + VDA is Rs. 6000. What amount of PF will be deducted?

EPF will have to be deducted on salary, which includes Basic Salary and Dearness Allowance (whether fixed or variable). Therefore, in your case, PF is to be deducted from Rs 6000.

Regards,
Madhu.T.K

I agree with what has been stated in the post. As PF is applicable on Basic & DA (in your case - Rs. 6000/-).

PF should be deducted on Rs. 6000/- because this is the component of basic + VDA, which is a necessary component for EPF deduction.

Thanks & regards,

Sumit Kumar Saxena

As per EPF definition, the PF contribution is calculated on Basic + VDA, with a PF Salary Limit up to 6500/-. Therefore, you have to deduct the PF Contribution on Rs. 6000/- (Basic + VDA). If the verification of the amount Rs. 6000/- is broken down into Basic, DA, and other allowances like HRA, CCA, for example, Basic Rs. 4000 + VDA Rs.1000 + HRA Rs.1000/-, then you have to deduct the PF contribution on Rs. 5000/-, not on 6000/-.

According to the Minimum Wages Act, the total remuneration should not be less than the fixed minimum rate.