PF Inspection & Reports

Dear Seniors
We are the Construction company with staff strength of 17 and we detect PF from the basic salary and we dint have DA. Most of the staffs basic salary will be 4000 to 6000.
PF inspector gave a report to us a week back
According to the book " The Employees provident Funds And Miscellaneous Provisions Act, 1952" - 'Basic salary' excludes HRA, Bonus, commission, OT and includes all the salary emoluments other than above components. and he orally said that - If the basic is less than Rs.6500, we should include some components that it should come Rs. 6500 and compulsory we should detect from Rs.6500.
Questions
1. What is the minimum wages for Construction industry(management staffs) ?
2. Why they take Rs.6500 in PF when it is pension scheme slab.

Slabs for 2010 -11 are - <link no longer exists - removed> .
PF deduction should be at minimum wages of state or 6500/- .
regards
Jatin
9421757813

Hello Seniors,
If the basic is say Rs 6000/- then in this case is it right to deduct Rs 6000 x 12% or have we to compulsorily make the minimum basic to Rs 6,500/- in order to deduct the pf as the above explanation seem to imply that!...pls clarify.

i saw the link you sent to me - but it has only DA
How we find Minimum wages for chennai

Dear All
PF inspector is not correct. In many sectors including construction the rates of minimum wagesnotified by Govt. are lesss than Rs 6500/- For argument sake if we take minimum wages as basic for PF it comes less than Rs 6500/- HRA , Bonus etc are exclusively out PF perview. But the employer has to ensure the amount of allowances are not abnormal. It should be within reasonable limit. In other words Sunday should longer than Monday.
Hope this is clear to all
S N Bansode

Dear friend
If your basic is ^000/ then deduct PF only on that amount & you need not increase to Rs.6500/-
S N Bansode

Dear,
The MW is your base. Where did this inspector come from ? the labour dept or from the enforcement ?

Dear Bansode
Nowadays PF office mainly @ Chennai are concentrating mostly on these kind of cases and they stating that many Companies are paying less PF because they have kept their Basic less and other components more.
Also to avoid these kind of issue they are recommending to keep basic @ 60% of gross for those members who are drawing basic less than Rs.6500
As you know these PF rules has so much in fine print most of us comes to know only when they are at firing line
Regards
Guru.k

Dear Brother from Chennai,
You just ask the Inspector you issue us the notice in this regard, as their is a judgement in Group4 Security v/s. EPF tribunal in June 2009 which allow us to bifurcate the Wages in parts like HRA conveyance etc.
You give your e-mail ID to me and specific notice of the Inspector in this regard, so that I can sent to you the Specific judgement with me.
with regards,
SHISH RAM UNIYAL
COMPLIANCE CONSULTANT
09811681660

Hi,
pls. take note of what Mr. Shish said, he is right and ask Pf inspector to give u notice on this regard, he can not force to make basic upto Rs. 6,500/- kindly note these points.
1. Basic wage can never be less than min. wage.
2. Local PF can decide approx % of Gross as basic to be kept. like some authorities says about 60%. This is basically comes under the power of PF Commisioner to take care in the best interest of employees.
but they cannot force employer to increase this, u can go to court and get the judgement in your favor.
Regards
Manish