Dear
Firstly you have to pay minimum wages to the employees or workmen of your organisation
The definition of Basic wages has been defined under section 2(b) of the EPF & MP Act, 1952 as below:
Section 2(b) "Basic wages" means all emoluments which are earned by an employee while on duty or on leave on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include
i. the cash value of any food concession
ii. any dearness allowance ( that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;
iii. any presents made by the employer
But First Bench Madras high court has stayed the order of a single judge passed in the Management of Reynolds pens India Pvt. ltd., Kancheepuram and others vs. the regional PF Commissioner-II, Chennai, 2011 LLR 876, holding that the employees' provident fund contributions were payable on various allowances like conveyance allowance, education allowance,special allowances, Food concessions, Medical allowance, Special holidays, night shift Incentive and City compensatory allowance. The stay order was passed in the presence of the counsel for provident fund dept. No next date has been fixed for final hearing of the appeal.
However it is better to have wage components as mentioned below: Basic, DA and HRA and deduct PF only for Basic. Since Minimum wages also includes HRA you can befurcate the minimum wages as mentioned below:
i. Retain the minimum wages Basic as Basic wages
ii. you can split the DA into Two parts. one is DA and another is HRA. This is more safe.