Two suggestions are made pl. Firstly, definition of basic wages is proposed in the Bill to be substituted by wages. This term is very wide and implicitly as per contract will include HRA, DA, bonus etc. as according to the proposed definition, wages means all remuneration paid or payable. On contrary employer may even contract out to minimize the wages for purposes of PF. On the one hand it may raise contributions limit largely and in some cases employer may contract with employee to limit scope of wages to reduce his part of contributions. Under Coal Mines Provident Fund Scheme, the term basic wages exclude HRA,DA, food concession, overtime, bonus, commission, presents, or donations. Thus there is need to specify the term wages for the purposes of the Act. Further, the term basic wages used in Act as under section 8A should be substituted by wages as term “basic wages” is proposed to be omitted.
Secondly, there are cases where employer issues only vouchers for salary to avoid his contribution to PF. In view of certain decisions of HC as cited in Law Commission of India reports an employer shall be deemed to be liable to pay arrears from the date when employee is eligible under the Act irrespective whether he recovers the dues under the Act.