Can Minimum Wages be Split into Basic + DA + HRA for PF Calculation?

Splitting Minimum Wages into Components

Can we split minimum wages into Basic + DA + HRA?

For example,

Case 1: Minimum Wages in Delhi

Minimum wages in Delhi are 18,000. Can we split it into 10,000 + 2,000 + 6,000, and calculate PF only on 12,000?

Case 2: Minimum Wages in Goa

Minimum wages in Goa are 14,000. Can we split it into 8,000 + 2,000 + 4,000, and calculate PF only on 8,000?

Yes, minimum wages can be split into Basic + DA + HRA for PF calculation purposes. However, it is crucial to ensure compliance with labor laws and regulations. The splitting of minimum wages should align with the rules set forth by the respective state government or relevant authorities. It is advisable to refer to the official circulars or notifications issued by the concerned department for specific guidelines on wage structuring and PF calculation based on the split components. Ensure that the division of wages is in accordance with the statutory requirements to avoid any legal implications.