Dear Friends,
Enclosed, please find a clarification given by the Additional Central PF Commissioner regarding PF contributions on Minimum Wages. It was clearly instructed that employers should not split Minimum Wages for the purpose of PF Contribution.
Regards,
Jawed Alam.
From India, Dhanbad
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78Enclosed, please find a clarification given by the Additional Central PF Commissioner regarding PF contributions on Minimum Wages. It was clearly instructed that employers should not split Minimum Wages for the purpose of PF Contribution.
Regards,
Jawed Alam.
From India, Dhanbad
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Hi Jawed, Excellent information. I was eagerly waiting for the same as the matter was subjudice in the court of law. I thank you for posting the circular on CITEHR. Thanks. Jaikishen
From India, Mumbai
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From India, Mumbai
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Dear Jawed ji, Here is a 'Editor’s Voice' on the Splitting of Minimum Wages for the purpose of PF. Regards, PBS KUMAR
From India, Kakinada
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From India, Kakinada
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Yes, I agree with Mr. Jawed Alam that the bifurcation of minimum wages is not permitted, as I have also stated in all my previous postings. Secondly, Mr. Alam, we also reside in the same place where you are right now, i.e., Bhojudih Coal Washery.
Thanks & Regards,
Sumit Kumar Saxena
9899669071, 0120-4131277
From India, Ghaziabad
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Thanks & Regards,
Sumit Kumar Saxena
9899669071, 0120-4131277
From India, Ghaziabad
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Thanks Sir, This is a valuable documents to defend against the mal practices being implemented by the contractors to reduce the EPF contribution of labour regards Rajiv Kaushesh Patiala Pb.
From India, Patiala
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From India, Patiala
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Can i know the minimum wages amount that need to be paid to employees and what all compenents to be shown as minimum wages ? Please help me out in this issue. ?
From India, Mumbai
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From India, Mumbai
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Dear Sajit,
Greetings for the day.
The component of the minimum wage is basic + DA/VDA, excluding other allowances. Secondly, it is defined by the state from time to time.
Sumit Kumar Saxena
9899669071, 0120-4131277
From India, Ghaziabad
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Greetings for the day.
The component of the minimum wage is basic + DA/VDA, excluding other allowances. Secondly, it is defined by the state from time to time.
Sumit Kumar Saxena
9899669071, 0120-4131277
From India, Ghaziabad
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Please refer to the judgment of the Punjab and Haryana High Court CWP No. 15443 of 2009 (O and M) in the matter APFC GGN. Vs. M/s G4 Security Services decided on 1st February 2011, wherein it is very clearly defined that splitting of minimum wages as per the definition of the Minimum Wages Act is permissible.
In this regard, the Labor Law Reporter Advocate Mr. H.L. Kumar has requested the Additional Central P.F. Commissioner to forward.
There is no confusion in interpretation; hence, please study both references and act freely.
From India, New Delhi
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In this regard, the Labor Law Reporter Advocate Mr. H.L. Kumar has requested the Additional Central P.F. Commissioner to forward.
There is no confusion in interpretation; hence, please study both references and act freely.
From India, New Delhi
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Dear Mr. Javed,
You have posted and shared the most confusing matter about the deduction of PF on minimum wages. I too was always hesitant about the deduction. I sincerely want to express my thanks to you. Please keep posting such valuable circulars.
Mangesh Wakodkar Sr. Executive HRD
From India, Pune
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You have posted and shared the most confusing matter about the deduction of PF on minimum wages. I too was always hesitant about the deduction. I sincerely want to express my thanks to you. Please keep posting such valuable circulars.
Mangesh Wakodkar Sr. Executive HRD
From India, Pune
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Dear All,
Thank you for your response. As Mr. Jaikishen mentioned, the matter is sub judice in the court of law. The issue of splitting of Minimum Wages by the PF Authority has been eagerly awaited by HR professionals for a long time. This became even more complicated after the judgment in the Bridge & Roof Case, with contractors citing this reference while splitting Minimum Wages. Thanks to the Additional Central PF Commissioner and PF authority for restricting contractors/employers from splitting Minimum Wages.
Dear Sajit1980,
There are mainly 3 components of Minimum Wages:
1. Basic
2. Dearness Allowance
3. House Rent Allowance
Minimum Wages are fixed by the Joint/Labour Commissioner of every state in India for different industries, considering changes in the Consumer Price Index of 39 food grain items from the last CPI. Since the base year for calculating Minimum Wages was fixed by the Labour Department in 1960, it has become much more complicated to determine the exact portions of Basic, DA, and HRA from the notified Minimum Wages of Scheduled Industries.
When we refer to Minimum Wages payment, it is meant as a lump sum on a monthly basis for 26 days or as a piece rate, generally without segregating it into Basic, DA, and HRA.
Regarding your question, you need to determine the category of industry in which your company falls as per the list of Scheduled Industries and obtain the minimum wages rate from the notified circular for the purpose of Minimum Wages payment. Therefore, there is no need to display different components of Minimum Wages separately. You can refer to the details on how we arrived at Minimum Wages (CPI change).
Dear Sumit Kumar Saxena,
I am glad to know you are from BCW. I have visited there a few times, though not for official purposes, and my native place is also Purulia. However, I have recently been transferred to Sagardighi Thermal Power Station (New Project of 500 MW X 2). You are currently working in Noida, so we can share our limited HR knowledge with each other. Thank you for your reply.
Regards,
Jawed Alam
From India, Dhanbad
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Thank you for your response. As Mr. Jaikishen mentioned, the matter is sub judice in the court of law. The issue of splitting of Minimum Wages by the PF Authority has been eagerly awaited by HR professionals for a long time. This became even more complicated after the judgment in the Bridge & Roof Case, with contractors citing this reference while splitting Minimum Wages. Thanks to the Additional Central PF Commissioner and PF authority for restricting contractors/employers from splitting Minimum Wages.
Dear Sajit1980,
There are mainly 3 components of Minimum Wages:
1. Basic
2. Dearness Allowance
3. House Rent Allowance
Minimum Wages are fixed by the Joint/Labour Commissioner of every state in India for different industries, considering changes in the Consumer Price Index of 39 food grain items from the last CPI. Since the base year for calculating Minimum Wages was fixed by the Labour Department in 1960, it has become much more complicated to determine the exact portions of Basic, DA, and HRA from the notified Minimum Wages of Scheduled Industries.
When we refer to Minimum Wages payment, it is meant as a lump sum on a monthly basis for 26 days or as a piece rate, generally without segregating it into Basic, DA, and HRA.
Regarding your question, you need to determine the category of industry in which your company falls as per the list of Scheduled Industries and obtain the minimum wages rate from the notified circular for the purpose of Minimum Wages payment. Therefore, there is no need to display different components of Minimum Wages separately. You can refer to the details on how we arrived at Minimum Wages (CPI change).
Dear Sumit Kumar Saxena,
I am glad to know you are from BCW. I have visited there a few times, though not for official purposes, and my native place is also Purulia. However, I have recently been transferred to Sagardighi Thermal Power Station (New Project of 500 MW X 2). You are currently working in Noida, so we can share our limited HR knowledge with each other. Thank you for your reply.
Regards,
Jawed Alam
From India, Dhanbad
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