Hi,
Can anyone tell me whether I can bifurcate minimum wages into 2 parts like Basic = 67% and HRA = 33% and deduct PF on Basic wages? I am doubtful that the PF officials can force me to deposit the dues on the full minimum wages. Please help.
From India, Lucknow
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Can anyone tell me whether I can bifurcate minimum wages into 2 parts like Basic = 67% and HRA = 33% and deduct PF on Basic wages? I am doubtful that the PF officials can force me to deposit the dues on the full minimum wages. Please help.
From India, Lucknow
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Dear Ashish,
What you are doing is correct; nothing to worry about. You need not pay PF on the entire minimum wages. The MW act states that wage = basic + DA + HRA. Whereas, the PF act defines wage = basic + DA + value of food concession + retaining allowance. Have you found any HRA component in the PF wage? Therefore, you need not do so.
Thank you.
From India, Hyderabad
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2What you are doing is correct; nothing to worry about. You need not pay PF on the entire minimum wages. The MW act states that wage = basic + DA + HRA. Whereas, the PF act defines wage = basic + DA + value of food concession + retaining allowance. Have you found any HRA component in the PF wage? Therefore, you need not do so.
Thank you.
From India, Hyderabad
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Splitting of minimum wages for PF in abeyance (1).pdf
Minimum Wages, ESI & PF.pps