Splitting Of Minium Wages

asim_up
pls let me know the splitting of Minium Wages is permissable?
saswatabanerjee
Every state gives a notification every 6 months giving their min wages
the notification generally states that it covers Basic, or Basic + DA or Basic + DA + HRA
If in any of the cases, min wages will be considered only to the extent covered above.
eg. if you have min wages of 5500, and your Basic + DA is 2500 while the gross is 6000, you will be considered violating the act and will have to pay the difference, even though you have actually paid higher than min wages notified
Hope that helps
Rawatcs
Dear all,
As per circular from PF office, it is not allowed to split the minimum wages for PF contribution.
Chandan Rawat
9899666211
uniquekuldeep
As per the case of Airfreight vs. State of Karnataka, in the year 1999 in the Honourable Supreme Court, it is held that if you are paying the overall wages above the minimum wage, then it is not illegal if the break-up of Basic salary and D.A. as prescribed by the Minimum Wages Act is not followed.
You may refer the below link to read the judgement:
Airfreight Ltd. vs State Of Karnataka & Ors. on 4 August, 1999
Regards,
Kuldeep Singh
Satish Kumar Bhargava
The Circular referred has been overruled by the Delhi High Court. In No. of Cases The Hon\'ble High Court has quashed the orders issued by the EPFO. G4s vs RPFC Gurgaon may be referred
saswatabanerjee
The highcourts, from what i understand, only struck down the PF circular on the grounds that PF dept is not concerned with minimum wages. Its the state government that has to act. So i think the matter is not settled yet and may come back to bite .....
sumitk.saxena
My concern with saswata Banerjee that PF dept. is concern with the minimum wages alhough it was the part of state government, but the basis of deduction of epf is only & only on minimum wage of that state and also remind that basic wage can't be less than minimum wage of the state.
Thanks & Regards,
From,
Sumit Kumar Saxena
saswatabanerjee
Sumit, Satish
I understand that the supreme court has stayed the hc ruling and asked the company to deposit 60% of the money in the court and the proceed wit the appeal
sarvesh kumar goswami
Dear Seniors,
In UP MW is 4525 and splitted as Basic-2600+VDA-1928=4528 Now I am giving to my workers as 2900 as Basic+1650 as HRA & conv Allc. Since Basic decided by Govt is 2600 and i'm paying more than that pl tell me where i'm wrong.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute