Can We Split Minimum Wage for PF Deductions? Seeking Your Advice on Basic vs. HRA

Can we bifurcate the minimum wage, i.e., Basic + HRA + Con., and have PF deducted only on Basic? We need your suggestions for the same. Your prompt reply in this regard will be highly appreciated.

Thanks & Regards,
Vijay Yadav
[Phone Number Removed For Privacy Reasons]

Minimum wage can be bifurcated as Basic + VDA. However, the PF deduction has to be calculated on the total of Basic + VDA at 12%.

Regards

PF is deducted on BASIC + DA, with employees contributing 12% and employers contributing 12%. Minimum wages can only be bifurcated as Basic & DA.

With Regards,
Vineet.

Yes, it can be bifurcated. There is a recent judgment dated 7th February on the same issue by the Punjab & Haryana High Court, which clarifies this point. Search on the forum to the right side; certainly, you will find the judgment.

If you are paying a consolidated salary, then the basic + DA should not exceed 60%. On the 60% amount, PF of 12% can be deducted.

Regards

Minimum Wage Bifurcation and Legal Guidelines

Is there any act or law that clearly mentions that the minimum wage can't be bifurcated or should consist only of BASIC + DA? Please provide me with some supporting information if you have any.

Regards

Does this also mention anywhere how much the basic salary should be? Is there a set formula to determine the basic salary as per the law?