Dear Team, Can any one please explain me what is deduction of PF on special allowance? And how to adjust special allowance while doing CTC break up. Regards, Nandini
From India, Mumbai
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3From India, Mumbai
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Hi Prashanth,
Okay, I agree with you, but please tell me:
1. If employees earn less than the minimum wage, will it be against government rules?
2. In my company, they are maintaining two separate registers; who will fall under the minimum wage category and who will not?
3. Can we deduct PF and ESI if they fall under the minimum wage category?
4. Is there any PF rule where employees have the option to opt for PF?
Please provide answers to all four questions.
Regards,
Nandini
From India, Mumbai
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Okay, I agree with you, but please tell me:
1. If employees earn less than the minimum wage, will it be against government rules?
2. In my company, they are maintaining two separate registers; who will fall under the minimum wage category and who will not?
3. Can we deduct PF and ESI if they fall under the minimum wage category?
4. Is there any PF rule where employees have the option to opt for PF?
Please provide answers to all four questions.
Regards,
Nandini
From India, Mumbai
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PF has to be paid on Basic + DA. Some states are notifying DA as Special allowance - in which case PF has to be paid on Special allowance. However, PF contribution has nothing to do with minimum wages because of the ruling by the EPF Appellate Tribunal and inclusion of HRA in the definition of "wages" under Sec 2 (h) of the Minimum Wages Act 1948.
Regards,
N. Nataraajhan
Sakthi Management Services
Hp: +91 94835 17402
E-mail: natraj@sakthimanagement.com
From India, Bangalore
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Regards,
N. Nataraajhan
Sakthi Management Services
Hp: +91 94835 17402
E-mail: natraj@sakthimanagement.com
From India, Bangalore
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Please clarify do minimum wages consider monthly gross (basic,da,conv,hra,spl) or only basic and da.
From India, Mumbai
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From India, Mumbai
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Dear Nataraj, in my company CA is telling minimum wage means all the remuneration which we are giving like basic+DA+HRA+Conv+Spec, is this correct? Regards, Nandini
From India, Mumbai
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From India, Mumbai
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Ms. Nandini,
It is true that the PF Appellate Tribunal and Kerala HC have held that MW wages could be split. However, considering the inclusion of HRA in the definition of wages under Sec 2 (h) of the Minimum Wages Act and the Honorable Supreme Court ruling in the Airfreight case, it is advisable to have MW comprising Basic, DA, and HRA until the final verdict by the Supreme Court.
Regards,
N. Nataraajhan
Sakthi Management Services
From India, Bangalore
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It is true that the PF Appellate Tribunal and Kerala HC have held that MW wages could be split. However, considering the inclusion of HRA in the definition of wages under Sec 2 (h) of the Minimum Wages Act and the Honorable Supreme Court ruling in the Airfreight case, it is advisable to have MW comprising Basic, DA, and HRA until the final verdict by the Supreme Court.
Regards,
N. Nataraajhan
Sakthi Management Services
From India, Bangalore
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PF Contribution on not less than Minimum Wage.pdf