Basic Calculation - Pdf Download - Minimum Wages

hi all,
i wanted to ask that is there any law or provision in which it is mentioned that basic shouldnt be less than minimum wages? if the gross salary is higher than the minimum, then does it matter if we keep basic less?

This is not correct as recently govt . has clearly notifiyed that minimum wages must not be seperated or bifugated as pf must be deducted from basic Wage .
Warm Regards ,
Amit

Dear Sirs
Please read the judgment of the Honourable Supreme Court of India in CASE NO.: Appeal (civil) 4259 of 1999
PETITIONER: AIRFREIGHT LTD. RESPONDENT: STATE OF KARNATAKA AND ORS. DATE OF JUDGMENT: 04/08/1999. The answer to the query would be found in this judgment. This judgment is available in the website of the Honurable Supreme Court of India.

basic cannot be lessrhan min wages, regardless the gross sal. basic wages to be as perin wages law...

Sub- basicpay-minimum wages
What Mr.Hariharan said is right. The essence of Airfreight case is that so far as the compliance with Minimum Wages Act is concerned, the employer is deemed to have complied with the Act if he pays wages higher than the prescribed minimum wages irreespective whether the components of basic pay or dearness allowance are lesser than the those notified by the appropriate government under the M.W Act.
The case of Harilal Jechand doshi v. State of Maharastra 1999 II CLR 799((Bombay H.C) directly covers your case.
B.Saikumar
HR& Labour Law Consultant
Chipinbiz Consulatancy Pvt.Ltd
Mumbai
Tel: 022-28324234

What Mr. Hariharan and Mr. Saikumar stated is correct.
What is required to be compared is the Gross paid with that of the Minimum Wage prescribed by the Govt. under M.V.Act
kumar

Dear Friends,
I am sharing the notification already shared by one worthy member. This notification is issued by the PF Authority which keeps in abeyance the earlier circular of not splitting the minimum wage. This is done in view of a Decision of Hon'ble Supreme Court of India as mentioned in the circular itself.

Hi all,
I had posted this notification.With the help of this,PF inspector was not penalized our company to not maintain the Basic as minimum wages

Dear All,
From Chennai
On recent time we had inspection from EPF.After conciliation they have given the notice to pay due of " Conveyance Allowance " stating that conveyance allowance also the part of "basic pay".instill we are being remitting the contributions only for Basic pay so far.EPF has advised us to revise the returns what so far we submitted and to remitt the balance "conceyance allowance" contribution with a deadline failing to pay would face court.
Pls give your valuable suggestions for futher proceedings,

sub- salary components

What one needs to understand is that once you become covered by P.F Act, you need to pay contribution under Sec.6 of the P.F Act on the basic wages + D.A + Retaining allowance.+cash value of food concession, if any given by your company. Even though the the definition of basic wages under Sec.2(b) of the P.F Act excludes HRA, bonus, commission or any other similar allowance and thus excludes them from being counted for contribution, the hon'ble High Court of Gujrat in Gujrat Cypromete Ltd V. Assistant P.F.commissioner, 2004 III CLR 485 held that the' basic wages' under Sec.2(b) of the Act includes various allowance like lunch,medical,conveyance allowance except HRA. Thus the position in law is that except HRA, bonus or commission, many other allowances may count for contribution of P.F. It is to be asceratined whether this judgment has been challenged before a division bench/Supreme Court.Till then the legal psostion is that as held in Gujrat Cypromete 's case.

B.Saikumar

HR & Labour Law consultant

Chipinbiz Consultancy. Pvt.Ltd

Mumbai

Tel: 022-28324234