Hi,
Can anyone advise on the bifurcation of Minimum Wages [Rs. 3510 in Haryana] as [Basic 2640 + HRA 870 = Total 3510] and deduct Provident Fund (PF) only on Basic i.e. Rs. 2640? If possible, please provide:
- Relevant ruling supporting the aforesaid case.
- Is it possible to have any breakdown of Minimum Wages [Basic: HRA: Others, in any % of Minimum Wages]?
Manoj Gupta
From India, Delhi
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Can anyone advise on the bifurcation of Minimum Wages [Rs. 3510 in Haryana] as [Basic 2640 + HRA 870 = Total 3510] and deduct Provident Fund (PF) only on Basic i.e. Rs. 2640? If possible, please provide:
- Relevant ruling supporting the aforesaid case.
- Is it possible to have any breakdown of Minimum Wages [Basic: HRA: Others, in any % of Minimum Wages]?
Manoj Gupta
From India, Delhi
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Hi PF has to be 12 % on Basic + DA. if DA is not applicable then it can be on 12% of Basic Regards SJ
From India, Patna
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14From India, Patna
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I am not clear how basic can be fixed by the PF authorities. Basic salary means the skill is evaluated in terms of money, like HRA is to defray the cost of House Rent Allowance. We cannot have the same basic for a housekeeping staff and a storekeeper. It is left to the management to fix the basic and deduct the PF on this.
From India, Chennai
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From India, Chennai
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Wages, whether in the form of basic + DA + HRA + CCA, etc., or in the form of a consolidated amount, are decided by the employer, and PF authorities have nothing to do with it. If you show the salary of the employees as Basic + DA + HRA, etc., then PF will be calculated on the Basic amount + DA. That means HRA and CCA or Conveyance allowance will not be taken into account for the calculation of PF.
The fixation of basic wages is purely an internal matter, but it shall be done at par with the minimum rates of wages applicable to your industry and your area of work.
Regards, Madhu.T.K
From India, Kannur
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The fixation of basic wages is purely an internal matter, but it shall be done at par with the minimum rates of wages applicable to your industry and your area of work.
Regards, Madhu.T.K
From India, Kannur
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Dear Madhu I agree with you but still I don’t know why the PF authorities are asking the companies to keep 60% of the salary as basic? regards M S V
From India, Chennai
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From India, Chennai
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Dear All,
There is only one principle applicable in this query: the principle of natural justice. You can't make a breakup that is unjustified compared to the structure of other on-roll teams and other industries in the same profession, just to deprive employees of better PF accumulation, bonus, and gratuity benefits. If you are doing so without following the principle of natural justice, you may face a notice from the PF authority and encounter trouble.
Thanks,
Ajay Morolia
Jaipur
From India, Delhi
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There is only one principle applicable in this query: the principle of natural justice. You can't make a breakup that is unjustified compared to the structure of other on-roll teams and other industries in the same profession, just to deprive employees of better PF accumulation, bonus, and gratuity benefits. If you are doing so without following the principle of natural justice, you may face a notice from the PF authority and encounter trouble.
Thanks,
Ajay Morolia
Jaipur
From India, Delhi
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I am sorry to find that PF officers do insist you to make 60% as basic wages. It is only an internal matter of the company. The only thing you have to ensure is that you are not supposed to fix basic wages at a rate below the minimum rate fixed by the Government. PF authorities have nothing to do with fixing up of wages.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Dear Mr. Madhu,
We need clarification on whether the government-fixed minimum wages can be bifurcated as Basic + HRA. For example, if the minimum wage + DA = 2600, then shall we bifurcate the minimum as basic = 1200 + HRA = 659 + DA = 741. We require this information along with supportive local government laws or any guidance documents.
Regards,
G. Subiah
From India, Madras
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We need clarification on whether the government-fixed minimum wages can be bifurcated as Basic + HRA. For example, if the minimum wage + DA = 2600, then shall we bifurcate the minimum as basic = 1200 + HRA = 659 + DA = 741. We require this information along with supportive local government laws or any guidance documents.
Regards,
G. Subiah
From India, Madras
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No bifercation of minimum wages or wages below minimum wages is allowed by PF. The PF contribution is charged on the entire Minimum Wages amount. Regards Rajendra Bhavsar
From India, Mumbai
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From India, Mumbai
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This case shows a difference of opinion among PF authorities and Inspector of Factories. Some say that bifurcation is correct, while others argue that the bifurcation of minimum wages is wrong. This debate seems to be endless. Could anyone please explain with supportive law or guidance?
Thanks,
G. Subiah
From India, Madras
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Thanks,
G. Subiah
From India, Madras
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Minimum wages are declared by govt. authority but no one is know minimum basic amout for PF working
From India, Mumbai
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From India, Mumbai
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Dear Manoj,
First of all, in Haryana, the minimum wages are Rs. 4214/-
Second, minimum wages cannot be bifurcated.
Third, PF authorities cannot insist on keeping the basic @60% unless there is a provision under the act. Agreed to Madhu, it's an internal matter of an organization. Only ensure that the basic is not less than minimum wages.
Regards,
Baba Naresh
From India, Delhi
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First of all, in Haryana, the minimum wages are Rs. 4214/-
Second, minimum wages cannot be bifurcated.
Third, PF authorities cannot insist on keeping the basic @60% unless there is a provision under the act. Agreed to Madhu, it's an internal matter of an organization. Only ensure that the basic is not less than minimum wages.
Regards,
Baba Naresh
From India, Delhi
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can anyone share the Breakup of Min Wages in Haryana and the Min PF that can be deducted from employees and the share of company
From India, Delhi
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From India, Delhi
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx
Delhi - Minimum Wages w.e.f. 01.10.2012 (1).pdf