Seniors and fellow colleagues,
Breaking Minimum Wages into Components
As per the current statute, can we break minimum wages into (BASIC + HRA)? Being a realist, given the current scenario and unforeseen future, companies these days are trying their best to reduce their financial liabilities. Doing so can help them reduce PF contributions. Can the same be done, especially in the case of existing workers, by readjusting their pay breakup?
From India, Delhi
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1Breaking Minimum Wages into Components
As per the current statute, can we break minimum wages into (BASIC + HRA)? Being a realist, given the current scenario and unforeseen future, companies these days are trying their best to reduce their financial liabilities. Doing so can help them reduce PF contributions. Can the same be done, especially in the case of existing workers, by readjusting their pay breakup?
From India, Delhi
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Dear Learner PF contribution below Minimum wages is viewed as non compliance by EPFO. Please see attached Circular from EPFO. Regards Shailesh Parikh 99 98 97 10 65
From India, Mumbai
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From India, Mumbai
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Forwarding Hon'ble Presiding Officer - EMPLOYEES PROVIDENT FUND APPELLATE TRIBUNAL, New Delhi - Shri Harish Gupta's order dated 26.11.2015, wherein it is mentioned that:
Bifurcation of wages and jurisdiction of PF authorities
Bifurcation of wages below minimum wages or basic wages and DA etc. are issues completely out of the purview of PF authorities. PF authorities have no jurisdiction to ensure compliance with the Minimum Wages Act or to issue any direction in this regard. Wages are to be determined as a decision between employee and employer, and further authority appointed under the Minimum Wages Act is only empowered to raise issues regarding Minimum Wages to be given to the employee.
This was tolerable until 28.02.2019 (Before Supreme Court Judgement).
Regards,
Suresh
From India, Thane
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Bifurcation of wages and jurisdiction of PF authorities
Bifurcation of wages below minimum wages or basic wages and DA etc. are issues completely out of the purview of PF authorities. PF authorities have no jurisdiction to ensure compliance with the Minimum Wages Act or to issue any direction in this regard. Wages are to be determined as a decision between employee and employer, and further authority appointed under the Minimum Wages Act is only empowered to raise issues regarding Minimum Wages to be given to the employee.
This was tolerable until 28.02.2019 (Before Supreme Court Judgement).
Regards,
Suresh
From India, Thane
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EPF-Circular-da ted-23-May-2011 -Splitting-of-M inimum-Wages-fo r-the-Purpose-o f-PF-Contributi on-Not.pdf