So far as the EPF is concerned, the contribution by both the employer and employee is based on the minimum wages. The minimum wages include basic pay + dearness allowance. This can be a single component or in two components (i.e., minimum basic + DA at the rate prescribed by the Labour Department of the State Government). This is the correct position.
S. Krishnamoorthy
From United States, Roslindale
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7S. Krishnamoorthy
From United States, Roslindale
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CAN SOMEBODY PROVIDE THE COPY OF THE CASE , J.M.A. Industries Ltd. V/s R.P.F. Commissioner, Faridabad REGARDING DEDUCTION OF PF ON MINIMUM WAGES AMOUNT.
From India, Delhi
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From India, Delhi
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Malik sir,
I have the same query. If we are paying the gross wages more than the minimum wages and we are deducting the EPF on a lower amount than the minimum wages. One of my lawyers advised me, it is okay because we are paying more than the minimum wages. However, after observing the Group Four circular, I felt it was wrong. Is it okay? Please advise.
Regards,
VP
From India, Noida
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I have the same query. If we are paying the gross wages more than the minimum wages and we are deducting the EPF on a lower amount than the minimum wages. One of my lawyers advised me, it is okay because we are paying more than the minimum wages. However, after observing the Group Four circular, I felt it was wrong. Is it okay? Please advise.
Regards,
VP
From India, Noida
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[QUOTE=vikramlamhe;689446]CAN SOMEBODY PROVIDE THE COPY OF THE CASE, J.M.A. Industries Ltd. V/s R.P.F. Commissioner, Faridabad REGARDING DEDUCTION OF PF ON MINIMUM WAGES AMOUNT.
Dear,
You can have the copy of the JMA Ltd. case at the following link: https://www.citehr.com/32490-bifurca...mum-wages.html
Regards
From India, Ludhiana
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Dear,
You can have the copy of the JMA Ltd. case at the following link: https://www.citehr.com/32490-bifurca...mum-wages.html
Regards
From India, Ludhiana
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Dear Vidhi What are you trying to say It seems that something went wrong with your key board.
From India, Ludhiana
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From India, Ludhiana
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Can anybody provide me with any decision references from a high court or a supreme court? The internal guidelines of the PFD department do not hold the force of law. There is no specific reference to the payment of PF on minimum wages in the PF Act. An internal guideline by a CPFO or a High Court judgment (enforceable only in that state) or a Supreme Court judgment will be applicable to the Union of India. Can somebody share a copy of the Group 4 judgment and its current status? Is the matter in the Supreme Court, or has there been a judgment from the Supreme Court on this? All PF inspectors claim that there is an internal guideline to pay PF on minimum wages, but no one has shown me any guidelines. Can anybody help with the present status – internal guidelines by CPFO or a court judgment on this?
From India, New Delhi
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From India, New Delhi
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As in Himachal, we can change only 5% of the minimum wage, it means 95% of the minimum wage has to be kept as basic. Please confirm the same in Punjab & Haryana.
Regs, Naveen
Mr. Naveen, can you please attach the relevant circular of the PF department in this regard, since they are the competent authority.
Narayanan
From India, Madras
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Regs, Naveen
Mr. Naveen, can you please attach the relevant circular of the PF department in this regard, since they are the competent authority.
Narayanan
From India, Madras
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Mr. Naveen, could you please attach the relevant circular of the PF department in this regard, as they are the competent authority...
Narayanan
Dear Narayanan,
Could you please forward me the details of the notification of H.P. Govt. allowing a 5% change in the minimum wages fixed.
Further, I have gone through the matter in Punjab and have seen that there is no such provision in the notifications issued by the Punjab Govt on minimum wages. The notifications are silent on whether 5% or the whole of the minimum wages can be structured in such a way that the employee's take-home salary is never less than the prescribed minimum.
I can inform you that the Hon'ble High Court of Punjab and Haryana has admitted the writ filed by an employer and has stayed the operation of the impugned order passed by the labor authorities who were demanding the difference in minimum wages, where the basic wage was less than the MW, but the take-home pay was more than the MW fixed.
Furthermore, I have also come across the verdict of the EPF Appellate Tribunal setting aside the order of the 7-A authority demanding PF on minimum wages rather than on the basic wages. I am attaching the extract of the journal from the 2009 LLR 233.
Regards
From India, Ludhiana
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Narayanan
Dear Narayanan,
Could you please forward me the details of the notification of H.P. Govt. allowing a 5% change in the minimum wages fixed.
Further, I have gone through the matter in Punjab and have seen that there is no such provision in the notifications issued by the Punjab Govt on minimum wages. The notifications are silent on whether 5% or the whole of the minimum wages can be structured in such a way that the employee's take-home salary is never less than the prescribed minimum.
I can inform you that the Hon'ble High Court of Punjab and Haryana has admitted the writ filed by an employer and has stayed the operation of the impugned order passed by the labor authorities who were demanding the difference in minimum wages, where the basic wage was less than the MW, but the take-home pay was more than the MW fixed.
Furthermore, I have also come across the verdict of the EPF Appellate Tribunal setting aside the order of the 7-A authority demanding PF on minimum wages rather than on the basic wages. I am attaching the extract of the journal from the 2009 LLR 233.
Regards
From India, Ludhiana
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(Fact Checked)-The user reply contains accurate information regarding the situation in Punjab and Haryana with regards to minimum wages and PF regulations. (1 Acknowledge point)
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Dear All Please find the attached file contains Clarification of bifurcation by Labour Office to EPF Office Himachal . Regs Naveen
From India, Mumbai
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From India, Mumbai
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CiteHR.AI
(Fact Checked)-The user reply is correct regarding EPF contributions being based on minimum wages including basic pay + dearness allowance. This aligns with the law. (1 Acknowledge point)