We are confused with so many contradictions appearing on the issue of - Splitting-up of minimum wages for purpose of computing PF contribution.
We are following a uniform wage structure for our unit wherein along with Basic pay +DA( 50% of gross pay ) other components in the form of allowances ( HRA,Con,Washing,LTA etc.) exist and a sum total of all this constitute gross wages of an individual employee and put togather it works out to more than notified minimum wages.
Are we justified in contributing PF on our basic + DA structure,which put togather is not touching the notified minimum wages but with allowances it crossing the notified minimum wages.
D.T.Choudhari
Cell no.- 7032107756
From India, Adilabad
2We are following a uniform wage structure for our unit wherein along with Basic pay +DA( 50% of gross pay ) other components in the form of allowances ( HRA,Con,Washing,LTA etc.) exist and a sum total of all this constitute gross wages of an individual employee and put togather it works out to more than notified minimum wages.
Are we justified in contributing PF on our basic + DA structure,which put togather is not touching the notified minimum wages but with allowances it crossing the notified minimum wages.
D.T.Choudhari
Cell no.- 7032107756
From India, Adilabad
Dear Sir,
As per the latest supreme court verdict, EPFO do not have any authority to question or enforce the bifurgation of minium wages for any industry
.
Hence you are allowed to split minimum wages and proceed.
Hope this is clear now.
From India, Coimbatore
As per the latest supreme court verdict, EPFO do not have any authority to question or enforce the bifurgation of minium wages for any industry
.
Hence you are allowed to split minimum wages and proceed.
Hope this is clear now.
From India, Coimbatore
Hi,
When did supreme court has given any verdict? Do you have any copy of the judgement which can be provided. The case of EPFO V/S G4 securities is still pending in supreme court post which anything finally can be call upon. Till then the employer decide on what contribution they want to deduct PF. Generally 50% of basic is good to go from gross salary for deduction of PF but ensure the difference of basic vis a vis minimum wage would not be so high that it looks unacceptable, upto 20% is ok as per most of the industry standard.
From India, New Delhi
When did supreme court has given any verdict? Do you have any copy of the judgement which can be provided. The case of EPFO V/S G4 securities is still pending in supreme court post which anything finally can be call upon. Till then the employer decide on what contribution they want to deduct PF. Generally 50% of basic is good to go from gross salary for deduction of PF but ensure the difference of basic vis a vis minimum wage would not be so high that it looks unacceptable, upto 20% is ok as per most of the industry standard.
From India, New Delhi
Mr Ramesan Can you please share the citation of the judgement with brief details. With Warm Regards Bharat Gera HR Consultant 9322404765
From India, Thane
From India, Thane
Dear Mr Choudhari,
This matter is before the Supreme court & the judgement is still awaited. Till then, Haryana High Court decision is binding on all which allows splitting of min wages for the purposes of PF contribution. However, Min wages can be split into components of Basic, DA, HRA & uniform washing. LTA or food allowance can not form part of min wages.
Basic + DA component should be at least 50 % of the notified min wage.
Anil Raina
Mob: 9810180148
From India, Delhi
This matter is before the Supreme court & the judgement is still awaited. Till then, Haryana High Court decision is binding on all which allows splitting of min wages for the purposes of PF contribution. However, Min wages can be split into components of Basic, DA, HRA & uniform washing. LTA or food allowance can not form part of min wages.
Basic + DA component should be at least 50 % of the notified min wage.
Anil Raina
Mob: 9810180148
From India, Delhi
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