Recently, our consultant sent the minimum wages payable in a state and opined that the PF deduction should happen at the minimum wages priscribed for that State.
Clarification sought is :
currently the basic salary of employees on this particular state is much less than the minimum wages, however, the monthly salary paid out is atleast 25% higher than the minimum wages ( break up is Basic, HRA (40% of Basic), conveyance, special allowance, Personal pay, Medical allowance (1250 per month)
Is it necessary to raise the basic salary of all such employees to the min wages now, which is around 5900 per month
Is there any mention in PF act or any amendment to suggest so
an early reply is highly appreciated
regards
sreedharan
Clarification sought is :
currently the basic salary of employees on this particular state is much less than the minimum wages, however, the monthly salary paid out is atleast 25% higher than the minimum wages ( break up is Basic, HRA (40% of Basic), conveyance, special allowance, Personal pay, Medical allowance (1250 per month)
Is it necessary to raise the basic salary of all such employees to the min wages now, which is around 5900 per month
Is there any mention in PF act or any amendment to suggest so
an early reply is highly appreciated
regards
sreedharan