Please let me know whether, according to the PF & Labour Department, Basic pay = minimum wage or Basic + DA + Allowances = minimum wage. Since we are deducting PF on basic pay to manage the PF rule, as employees do not want to deduct PF on the whole amount. But at the same time, we don't want to be a defaulter for paying below minimum wages.
For example, Mr. A is drawing 5000/- (basic = 2500, HRA = 1000, Conveyance = 600, Special allowance = 900), and we are deducting PF on the basic. So my question is if authorities treat the basic, i.e., 2500/-, as the minimum wage, then to save one side, we will be a defaulter for another.
For example, Mr. A is drawing 5000/- (basic = 2500, HRA = 1000, Conveyance = 600, Special allowance = 900), and we are deducting PF on the basic. So my question is if authorities treat the basic, i.e., 2500/-, as the minimum wage, then to save one side, we will be a defaulter for another.