In my understanding as a professional with limited experience dealing with Labour Laws and various court rulings on the subject of bifurcation, some points worth noting are as follows:
1. Minimum Wage Notifications are issued by the Labour Department of the States.
2. In some cases, it is given as a lump sum, while in others, it is bifurcated into Basic, DA, VDA, etc.
3. Where the Minimum Wage is already bifurcated, statutorily the same cannot be further bifurcated, and the PF Contribution shall be based on the whole, as per the PF Act/Rules/Scheme.
4. In states where the bifurcation has not been specified, the aspect is unclear, potentially inviting bifurcation to save on PF contributions. However, doing the same for ESI is prohibitive.
5. Several cases on the subject have been arbitrated in various courts, and in most that I have reviewed, the courts have ruled that Minimum Wages cannot be further bifurcated. Cases go to court when interpretations are unclear. Not all states have such rulings. Consolidated data would be available with consultants and lawyers.
6. Such rulings are subject to the concerned state since the cases are based on Minimum Wages in specific states.
7. I have doubts about whether the same clarity exists in all states, including Delhi.
I am not a lawyer or practicing professional, and these points are derived from day-to-day experiences and inputs from court rulings and consultants we engage with.
Pradeep Bajaj 8)