Can We Split Unskilled Minimum Wages into Components Like Basic and HRA?

Dear All,

I have this question on Minimum wages bifurcation. We have a few employees who are receiving unskilled minimum wage. Now, my question is, can we bifurcate this minimum wage into basic, HRA, conveyance, etc.? Second question, can I give PF contribution on that basic, or do I have to give PF contribution on the minimum wages only (which indirectly means that I cannot bifurcate them).

Anu

Hello Friend,

The minimum wage cannot be shared into so many parts of the salary. I mean that it is not divisible. We have to make all the statutory provisions based on that amount.

Bye,

SSEHGAL

Dear Friend,

So, that means it can be bifurcated to the maximum of Basic and DA or just basic... am I right? Is it applicable on all three levels? I mean semi-skilled and skilled also. Can we bifurcate the semi-skilled wages into basic (equal to unskilled minimum wages) and the rest into HRA or others?

Anu

Dear All,

I have this question on Minimum wages bifurcation. We have few employees who are getting unskilled minimum wage. Now my question is, can we bifurcate this minimum wage into basic, HRA, conveyance, etc.?

Second question is, can I give PF contribution on that basic, or do I have to give PF contribution on the minimum wage only (which indirectly means that I cannot bifurcate them).

Anu

PF authorities are not permitted to bifurcate the minimum wages. Please see case no; AA no 599(16)/2000 M/s JMA Industries Ltd Vs Asstt. P.F. Commissioner, Faridabad dated 17.02.2005. You have to deposit the P.F. Contribution on basic salary only as per section 6 of the Act.

Regards,
Saumya

We can bifurcate the minimum wages into parts, as per the judgment of EPF Tribunal, New Delhi A.T.A. No. 223(16(2006) G4S Security Services (India) Ltd v/s. APFC, Gurgaon vide their order dated 15th June 2009. In accordance with minimum wages and the pay structure of the appellant is as per law and the PF contribution shall be payable on the basic wages paid to the employee. In a nutshell, the appellant is liable to pay its share of PF contribution on the basic wages payable + other allowance permissible under the act and not on entire minimum wages.

Thanks,

Shish Ram Uniyal
09811681660

Dear Anu,

The wages decided by the government for various categories i.e., unskilled, semi-skilled, and skilled cannot be bifurcated. For example, in my company:

Category Basic V.D.A Total
Unskilled 2405/- 1999.44 4535/-
Semi-skilled 2785/- 2196.62 4982/-
Skilled 3090/- 2437.18 5528/-

It means if you are hiring persons as unskilled, semi-skilled, and skilled, then you have to pay 4535/-, 4982/-, and 5528/- respectively, and you have to deduct the PF on this amount. This is because it is the minimum wage for different categories. For more information, please contact me on my cell phone.

Please let me know if you need any further clarification.

Dear all,

Latest judgment of EPF Tribunal, New Delhi. Please go through the attachment.

Shish Ram Uniyal
09811681660

Dear all,

I have this question on minimum wages bifurcation. We have a few employees who are receiving unskilled minimum wage. Now, my question is, can we bifurcate this minimum wage into basic, HRA, conveyance, etc.? Additionally, can I make PF contributions based on the basic wage, or do I have to contribute PF based on the minimum wage only, implying that I cannot bifurcate them?

Anu

Dear Anu,

You cannot bifurcate the minimum wages set by the government for unskilled, semi-skilled, and skilled workers. This means that if an employee is designated as a helper in the muster roll, you are required to pay unskilled minimum wages.