Is there any minimum wage limit for the deduction of PF? Suppose I am paying Rs. 3300/- Gross to my employee, which is the minimum wage in Himachal Pradesh. Is there any limit on fixing the basic salary and PF deduction on it? If so, please mail.
Thanks & Regards,
Avinash Kumar Sharma
[Email Removed For Privacy Reasons]
From India, Mumbai
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1Thanks & Regards,
Avinash Kumar Sharma
[Email Removed For Privacy Reasons]
From India, Mumbai
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Understanding PF Contribution and Minimum Wage Requirements
As per the Employees' Provident Fund and Miscellaneous Provisions Act, there is no minimum salary on which the PF should be contributed. The Act insists that PF should be contributed based on the Basic salary, Dearness Allowance, and Retaining Allowance (an allowance paid to retain manpower when there is no work). However, the EPF authorities have decided that PF should be contributed at least on a wage that is not lower than the minimum wages set by the government. This is to ensure that employers do not reduce the basic salary of their employees to lessen the PF burden. Therefore, if the minimum wage is Rs 3300, you will have to pay PF on at least Rs 3300.
Regards,
Madhu.T.K
From India, Kannur
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As per the Employees' Provident Fund and Miscellaneous Provisions Act, there is no minimum salary on which the PF should be contributed. The Act insists that PF should be contributed based on the Basic salary, Dearness Allowance, and Retaining Allowance (an allowance paid to retain manpower when there is no work). However, the EPF authorities have decided that PF should be contributed at least on a wage that is not lower than the minimum wages set by the government. This is to ensure that employers do not reduce the basic salary of their employees to lessen the PF burden. Therefore, if the minimum wage is Rs 3300, you will have to pay PF on at least Rs 3300.
Regards,
Madhu.T.K
From India, Kannur
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PF Contribution on not less than Minimum Wage.pdf