Dear Sir and all my seniors,
I want to know if the point of PF is to be paid on the minimum wages or if there are other considerations. Many security firms are paying PF based on the basic amount, which is less than the minimum wages. I also require a notification or copy of the rules regarding this issue.
I am waiting for a positive response.
From India, New Delhi
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36I want to know if the point of PF is to be paid on the minimum wages or if there are other considerations. Many security firms are paying PF based on the basic amount, which is less than the minimum wages. I also require a notification or copy of the rules regarding this issue.
I am waiting for a positive response.
From India, New Delhi
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Dear Mr. Ashok,
Greetings for the day :)
PF is always deducted on Basic. It doesn't matter whether it is higher or lower than minimum wages, but the gross pay should not be less than the minimum wages applicable in that particular industry or state.
From India, New Delhi
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Greetings for the day :)
PF is always deducted on Basic. It doesn't matter whether it is higher or lower than minimum wages, but the gross pay should not be less than the minimum wages applicable in that particular industry or state.
From India, New Delhi
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Dear Kapil,
Thank you for your reply. I heard during April 2005 that PF is based on basic wages but not less than the minimum wages. I would appreciate more comments on this from all seniors and any related notifications.
Ashok
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From India, New Delhi
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Thank you for your reply. I heard during April 2005 that PF is based on basic wages but not less than the minimum wages. I would appreciate more comments on this from all seniors and any related notifications.
Ashok
9999618458
From India, New Delhi
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Hi,
Minimum wages subject is different, and PF is different. Minimum wages can't be split. If you split, Basic and DA components should be as per Government minimum wages. Other components like HRA, CCA, and other allowances can be given apart from minimum wages. Hence, PF has to be paid on minimum wages. Minimum wages can't be split into a 60-40% break-up.
In practice, most companies follow the 60-40% break-up. No PF commissioner will provide in black and white support for splitting the minimum wages.
From India, Mumbai
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Minimum wages subject is different, and PF is different. Minimum wages can't be split. If you split, Basic and DA components should be as per Government minimum wages. Other components like HRA, CCA, and other allowances can be given apart from minimum wages. Hence, PF has to be paid on minimum wages. Minimum wages can't be split into a 60-40% break-up.
In practice, most companies follow the 60-40% break-up. No PF commissioner will provide in black and white support for splitting the minimum wages.
From India, Mumbai
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Ya. I agree. There has been judgment passed in the Supreme Court on the hearing of a union cadre that the PF has to be paid on the minimum wages and so minimum wages Thanks Poonam
From India, Delhi
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From India, Delhi
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Dear Poonam,
Greetings for the day:)
I want to inform you that a judgment can't be considered unless it has been amended in the act. Do you have any info about such an amendment or any section/rules which state it is a mandatory thing?
Judgments are appealable.
From India, New Delhi
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Greetings for the day:)
I want to inform you that a judgment can't be considered unless it has been amended in the act. Do you have any info about such an amendment or any section/rules which state it is a mandatory thing?
Judgments are appealable.
From India, New Delhi
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Dear Friend,
Greetings!
PF is payable on Basic Pay plus DA. Every employee whose Basic+DA is less than or equal to Rs. 6500/- at the time of joining the employment is compulsorily required to be covered under the Act. Others are not required mandatorily. A copy of the rule and definition is attached. Trust this meets your requirement.
Regards,
Sarath Chandra
Senior Manager
From India, Pune
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Greetings!
PF is payable on Basic Pay plus DA. Every employee whose Basic+DA is less than or equal to Rs. 6500/- at the time of joining the employment is compulsorily required to be covered under the Act. Others are not required mandatorily. A copy of the rule and definition is attached. Trust this meets your requirement.
Regards,
Sarath Chandra
Senior Manager
From India, Pune
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Dear Seniors,
In Tamil Nadu, we are facing the same kind of problems in factories (minimum wages split into basic and HRA, and PF deducted on basic + DA alone). Mr. Poonam, can you please post the Supreme Court judgment regarding this controversy? Some of the inspectors of factories and the social compliance auditors are saying PF has to be deducted on the minimum wages. However, when we ask for any mandatory rules from these Dy Chief Inspectors of Factories or Social Compliance Auditors, they do not have a clear idea, but they insist that what we are saying is correct and that you have to oblige.
In this case, can anyone post the relevant PF Commissioners' directions or any mandatory rules that will be useful for us?
Best Regards,
Subiah
From India, Madras
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In Tamil Nadu, we are facing the same kind of problems in factories (minimum wages split into basic and HRA, and PF deducted on basic + DA alone). Mr. Poonam, can you please post the Supreme Court judgment regarding this controversy? Some of the inspectors of factories and the social compliance auditors are saying PF has to be deducted on the minimum wages. However, when we ask for any mandatory rules from these Dy Chief Inspectors of Factories or Social Compliance Auditors, they do not have a clear idea, but they insist that what we are saying is correct and that you have to oblige.
In this case, can anyone post the relevant PF Commissioners' directions or any mandatory rules that will be useful for us?
Best Regards,
Subiah
From India, Madras
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Thank you for your interest in my issue. I believe that this deduction should not be lower than the minimum wage, as many companies are currently paying below the minimum wage. Therefore, I seek clarification and justification from the EPF or the labor department.
From India, New Delhi
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From India, New Delhi
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