Minimum Wage For Minmum Pay Towards PF Contribution

ManojHRDwivedy
Dear Sir/Ma'am,
As per Minimum Wage Act for UP the Minimum Wage for unskilled labor is Rs.7215.
So can I bifurcate this amount as 4000 as Basic+2000 as HRA + 1215 as other allowance.
So that I have to deduct and pay PF contribution @12% of 4000 = Rs. 480
SIGMAA HR
Dear Manoj,
No. You must cover the full minimum wages as basic salary under EPF. All allowances except HRA will be considered as PF Wages.
Regards,
Boopathi.N
rdsyadav
Dear sir,
Please pay PF CONTRIBUTION ON NOTIFIED wages only, a legal and correct advice.
Regds,
sensharma1959
Dear Manoj,
PF contribution under Act of 1952 has no relation whatsoever with the minimum wages fixed under the Act of 1948. PF contribution has to be paid only on the basis of basic wages as defined u/S.2(b) of the Act of 1952 as well as DA/Retaining allowance, if any in terms of S.6 of the Act of 1952.
PF authorities has no power under the PF Act to direct the establishment to remit PF on minimum wages prescribed by State Govt.
The issue is pending in the S.C. in Appeal Civil 9284/2013 between Asstt. PF Commissioner vs. M/s G4S Security Services.and there is no stay to the judgment of Division Bench of P & H H.C.
However, it is better to pay PF Contribution on the basic wages which is a component under the Minimum wages declared by the State Govt.
S. Sensharma, Industrial Law Consultant, Meerut
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