Whether Minimum Wages Is Covered For The PF Contribution.

Is it reasonable to deduct pf only on basic 60% hra 30% & convayance allownace ie 2360,1180,&394 =3934 (minimum wages feb 2009) PLEASE CLEARIFY

Dear Samvedan,

I am very impressed with your logical statement but few things needs to be clarified.....

Whereas it is very much clear in Minimum wages act that minimum wages includes House Rent, at the same time it is also right that in PF act for computation of PF house rent is not considered.

Having said that it is very much true and surprising that the PF department is still enforcing to deduct and contribute PF on Minimum wages + DA in void of a clear cut verdict on this issue. Please go through the below websites which are official websites of concerned department and try to study it and give us your focused opinion on legal stands.

EPFO <link updated to site home>
EPFO <link updated to site home>
Wage Cell Ministry of Labour & Employment <link updated to site home> ( Search On Cite | Search On Google )
http://labour.nic.in <link updated to site home>

Hey also check this below mentioned site link what they are saying here.

http://www.epfochennai.tn.nic.in/pdf/wages.pdf

Waiting for your reply.

Vijay

Dear Seniors,
My current company salary structure components are :

• Basic
• HRA
• Washing Allowance
• Medical Allowance / Medical Reimbursement.

I have got 2 questions?

1. In this format, can the Gross Salary be treated as Minimum Wages which is much higher than the statutory minimum wages?
2. Does introduction of Special Allowance / DA in the structure legalises our point that SMA=Gross Salary?

Looking forward towards your reply.
Regards
Amitava

Hi,
As per PF authorities, PF coverage include the BASIC+DA+Allowance.
(Ensure that Provident Fund is deducted at statutory rate from the total wages i.e. basic, D.A. and retaining allowance if any.). So please check and do as per the instructions.
Regards
A.Satheesh

I want to hire a peon (unskilled labour) and pay less than 15 k without giving pf, it is possible. under minimum wage act it is possible to give less than 15k but do i still have to give pf?