Every state gives a notification every 6 months regarding their minimum wages. The notification generally states that it covers Basic, or Basic + DA, or Basic + DA + HRA. In any of these cases, minimum wages will be considered only to the extent covered above. For example, if you have a minimum wage of 5500, and your Basic + DA is 2500 while the gross is 6000, you will be considered violating the act and will have to pay the difference, even though you have actually paid higher than the minimum wages notified.
Hope that helps
From India, Mumbai
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2497Hope that helps
From India, Mumbai
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Dear all, As per circular from PF office, it is not allowed to split the minimum wages for PF contribution. Chandan Rawat 9899666211
From India, Delhi
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From India, Delhi
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As per the case of Airfreight vs. State of Karnataka in the year 1999 in the Honourable Supreme Court, it is held that if you are paying the overall wages above the minimum wage, then it is not illegal if the break-up of Basic salary and D.A. as prescribed by the Minimum Wages Act is not followed. You may refer to the below link to read the judgment:
Airfreight Ltd. vs State Of Karnataka & Ors. on 4 August 1999
Regards,
Kuldeep Singh
From India, Vijayawada
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Airfreight Ltd. vs State Of Karnataka & Ors. on 4 August 1999
Regards,
Kuldeep Singh
From India, Vijayawada
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The Circular referred has been overruled by the Delhi High Court. In No. of Cases The Hon\'ble High Court has quashed the orders issued by the EPFO. G4s vs RPFC Gurgaon may be referred
From India, Jaipur
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From India, Jaipur
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The high courts, from what I understand, only struck down the PF circular on the grounds that the PF department is not concerned with minimum wages. It's the state government that has to act. So I think the matter is not settled yet and may come back to bite...
From India, Mumbai
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From India, Mumbai
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My concern with Saswata Banerjee is that the PF department is concerned with the minimum wages, although it falls under the jurisdiction of the state government. However, the basis of EPF deduction is solely on the minimum wage of that state. Also, please note that the basic wage cannot be less than the minimum wage of the state.
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
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Sumit, Satish I understand that the supreme court has stayed the hc ruling and asked the company to deposit 60% of the money in the court and the proceed wit the appeal
From India, Mumbai
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From India, Mumbai
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Splitting of minimum wages for PF in abeyance (1).pdf
Minimum Wages, ESI & PF.pps