Pf Deduction On Minimum Wage - Doc Download

Dear
More than the calculation part ,pls see the Airfreight Judgment.You can download from our CITE HR download section.Reading this will erase the doubts you have. More than the actual calculation Section 4 of the Minimum Wages Act has to be read plainly to understand it better.
With Regards



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Go through the attachment

Hello All
After viewing the above statment my submission is as per minimum wages act
Minimum wages can be bifurcated into Basic+DA+HRA.... or Basic+HRA...
One gentlement has written it can be bifurcated in no of components as per -Supreme Court... I request pls. eleborate with refrence case...
As far as PF is concern in general practice it should be deducted on Basic+DA...not VDA ... and on the other hand we have to analysis definition of "basic wage" under Sec. 2 (b) "basic wages".....in accordance with the terms of the contract of employment... and which has been interpreted by the Inspection authorities in various ways...and register the case and harsh establishment under Sec. 7A...
PF ded. should be made not less then the minimum wages has no supportings of the dept., however, RPFC commissioner(state wise) inforced the circular which is also under protest...
BR//Gajendra Verma

I think Basic Colculation
Gross = 10000
Basic = gross * 40% (Minimum Wages Act 40% Colculation for the gross).
hra = gross * 30%
conveyance = gross * 10%
Medical Allowance = Gross * 10%
Special allowance = gross * 10%
Deduction
Employee
PF = Basic *12%
ESI = Total earning *1.75%
:no:

Dear all,
The Airfreight judgement of the Hon'ble Supreme Court is right answer quoted by my friend. I feel that the spirit of law must be honoured and one should not be looking around the ways to escape it. There is not only PF Act but Acts like Payment of Bonus and Payment of Gratuity are also there which are paid on the components of Basic + DA. VDA is also DA. Basic+DA+VDA (if any) should be equivalent to or more than the minimum wage fixed by the government. Bifurcation is the prerogative of the employer but not at the cost of employee. Basic + DA has to be equivalent or more than the minimum wage fixed otherwise the employee will lose in terms of gratuity and bonus.
Regards
Jpratap

Trisha is correct
For minimum basic wages go to website of labour department.
Regards
Pankaj Chandan

Hi
Ans for your first quest Minimum wage cannot be splited to other componenets like spl allow etc.... it shd be strictly BASIC +DA.
For ur 2nd quest:Whatever the hike u give more than min wage its upto company wish to make it whole as BASIC +DA and spliting into other components.
i.e For eg if X shd gets min wage of 4030 but his actual salary we fix is 5000 We can do it as BASIC+DA:4030 the remaining amount 970 can be accommodated in any components.It can be done as BASIC +DA:5000 also its purely depends on comp policy.
Hope i have cleared. If im wrong pls correct me.
Regards,
Rohini

Salary Survey India, Online Wage Survey, Salary Survey by Paycheck India

this is very confusing and not possible to justify with supporting however this is good that your are contributing pf to you employees

hi
Pf doesn`t say about minimum wages. it only says about basic+DA to be considered for PF calculation, however it is implied that you are stipulated to the min wages act which is also equally applicable to your factory. in any case PF inspector cannot demand the min wages comply
regards
robert