Is it possible to split the minimum wages into various components to allow for Provident Fund deductions on a reduced basic? I eagerly await your prompt response on this matter.
Thank you very much to Mr. Korgaonkar and Ashish for your replies. It is also my firm belief not to split minimum wages to deduct from reduced basic pay at the expense of low-level employees' meager salaries, as they are already struggling in this challenging economic climate affecting all commodities. Despite one of my organization's consultants advocating for the splitting of minimum wages, we are against this proposition.
Where is it written that we cannot split minimum wages? Please provide a reference to the relevant Act/Rule.
Please try to understand that the Provident Fund Act and the Minimum Wages Act both fall under the labor ministry, but the higher authorities are different. If the government does not want anyone to split minimum wages, they should consider changing or amending the Minimum Wages Act.
There is one judgment popularly known as the Air-Freight Case wherein the Supreme Court has decided that Minimum Wages should be treated as one component only and not to be divided. I found this information from Kuljit Pal Singh, a member of Cite HR.
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