If a company pays a gross salary higher than the minimum wage, ESI and PF should be calculated on the gross amount. However, there should be no DA component in the salary structure. Is this structure legally compliant?
For example:
Salary Structure
- Basic: 6000
- HRA: 3500
- Others: 500
The basic wage as per the minimum wage is 5600, with no DA component included.
From India
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2For example:
Salary Structure
- Basic: 6000
- HRA: 3500
- Others: 500
The basic wage as per the minimum wage is 5600, with no DA component included.
From India
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As long as you pay more than the minimum wages, and pay ESI & PF on gross wages, no Inspection official will question you.
From India, Madras
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From India, Madras
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Dear Babu Alexander Sir, "and pay ESI & PF on gross wages," PF is paid on Basic+DA+VDA
From India, New Delhi
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From India, New Delhi
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Gross Salary(1).xls