Understanding the PF Circular: What Does the Hold on Splitting Minimum Wages Mean?

Attached Circular from the PF Department

Please see the attached circular dated 2.12.2011 from the PF Department on the subject.

Thanks

Of course, this letter with a temporary stay of the orders would put to rest the doubts of various professionals who will have to wait for the final ruling until the judgment on the SLP is out before resorting to the application of the order of the EPFO or the judgment.

An employer cannot reduce the wages of employees for the purpose of payment of contributions under the Act.

Refer to Case Law

Refer to the case law - Regional Provident Fund Commissioner, Bangalore vs. Harihar Polyfibres, 1991. IILLN 948:1992-II LLJ 761 (Kar.HC).

Regards, Kumar S.

Thank you very much for the valuable information. Kindly clarify for me whether, if it's kept in abeyance, wages for PF can be split until the judgment comes. Will it be legal?

Best wishes,
Sulabh Shinghal