Confused About PF Calculation in Maharashtra: Basic+DA or Minimum Wages?

Dear All, Our factory is located in Maharashtra. Please let me know if PF will be calculated on Basic+DA or on Minimum wages. There is a lot of confusion about its implementation.

Thanks,
Girish

PF is calculated on Basic plus DA and retaining allowance, if any. You are liable to pay Basic and DA at least at the rate prescribed under Minimum Wages. Therefore, PF deduction is applicable on Basic plus DA or the minimum wage amount, whichever is higher. This is applicable all over India. In Maharashtra, the special allowance is denoted as DA.

PF Contributions in Maharashtra State

There is a big confusion regarding PF contributions in Maharashtra State. The current minimum wages are Basic 5800 and Special Allowance 2511, totaling 8311.00. The PF deduction should be made from 8311.00, not 5800.00.

In our salary breakdown, if the Basic is 10000 and the Special Allowance is 6000, should the PF be deducted from 10,000 or 16000? Technically, it should be 16000, but can we still deduct the PF from Basic-10000? We have shown the special allowance separately and have not included it in calculating the PF.

Please advise.

Thank you.

Dear Sir,

Greetings for the day.

I agree with Mr. Keshav, but EPF authorities are also in a confusing state about what to do. When you go through the enclosed circular, you will also be confused. We all know that minimum wages consist of basic + DA, but the circular conflicts with this.

Thanks & Regards,

Sumit Kumar Saxena

Hi All,

Please let me know how to calculate PF on minimum wages in Maharashtra for zone 3.

Regards,
Mudita