Understanding PF ECR Changes: Can Basic Wages Fall Below Minimum Wage? How to Navigate This

Dear Seniors, Greetings! Kindly guide me on the following: The PF organization has changed the ECR format, now including gross wages. When we create staff salary structures, we differentiate monthly gross wages such as Basic, HRA, Education Allowance, Medical Allowance, and other allowances. In this structure, can Basic wages be less than the Minimum Wage? Could you kindly advise if this is correct or incorrect? I await your kind response.

In India, as per the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the Basic wages should not be less than the Minimum Wages. The EPF organization has revised the ECR format to include gross wages, which necessitates adherence to the Minimum Wage regulations. It is essential to ensure that Basic wages meet or exceed the Minimum Wage requirements to comply with the law and avoid any legal implications. Therefore, Basic wages being lower than the Minimum Wage in the PF ECR format is incorrect and should be rectified to align with statutory regulations. It is advisable to review and adjust the salary structures accordingly to maintain compliance and uphold ethical employment practices.