Breakup Of Minimum Wages For PF

Hi
Can any one advice on the bifurcation of Min Wages [Rs.3510 in Haryana] as [Basic 2640 +HRA 870 = Total 3510] and deduct PF only on Basic i.e. Rs.2640?
If possible then please provide
- relevant ruling supporting aforesaid case.
- can it be possible to have any breakup of Min Wages [Basic : HRA : Others, in any % of Min. Wages]
Manoj Gupta

Hi
PF has to be 12 % on Basic + DA.
if DA is not applicable then it can be on 12% of Basic
Regards
SJ

I am not clear how basic can be fixed by the P.F.Authorities. Basic salary means the skill is evaluated in the terms of money, like HRA is defray the cost of House rent allowance. We can not have the same basic for a housekeeping staff and a store keeper. It is left to the management to fix the basic and deduct the PF on this

Wages, whether in the form of baisc+Da+HRA+CCA etc or in the form of a consolidated amount is decided by the employer and PF authorities have nothing to do with it. If you show the salary of the employees as Basic +DA+HRA etc, then PF will be calculated on Basic amount + DA. That means, HRA and CCA or Conveyance allowance will not be taken for calculation of PF.
Fixation of basic wages is purely an internal matter but it shall be done at par with the minimum rates of wages applicable to your industry and your area of work.
Regards,
Madhu.T.K

Dear Madhu
I agree with you but still I don't know why the PF authorities are asking the companies to keep 60% of the salary as basic?
regards
M S V

Dear All,
There is only one principle applicable in this query; principle of natural justice. You cant make a break up which is unjustified comparatively to the structure of other on roll team and with other industries in same profession, just to deprive employees to get better PF accumulation, Bonus, Gratuity benefit. If you are doing so without following principle of natural justice, you may face notice from PF authority and may face trouble.
Thanks
Ajay Morolia
Jaipur

I am sorry to find that PF officers do insist you to make 60% as basic wages. It is only an internal matter of the company. Only thing you have to ensure is that you are not supposed to fix basic wages at a rate below the minimum rate fixed by the Govt. PF authorities have nothing to do with fixing up of wages.
Regards,
Madhu.T.K

Dear Mr. Madhu
We need the clarification on weather the government fixed minimum wages can be bifurcated as Basic + HRA (e.g minimum wage + da = 2600 then shall we bifurcate the minimum of basic = 1200 + hra = 659 + da = 741). Need this with supportive local government law or any of the guidence document.
regards
G. Subiah

No bifercation of minimum wages or wages below minimum wages is allowed by PF. The PF contribution is charged on the entire Minimum Wages amount.
Regards
Rajendra Bhavsar

This case difference of openion among PF authorities and Inspector of Factories some say's bifurcation is correct some say's bifurcation of minimum wages is wrong. this goes on endless, can any one please explain with supportive law or guidance.
Thanks
G.Subiah