Hello, Please advise me whether splitting of minimum wages in various heads (Basic,HRA,washing allowance etc ) is legal for purpose of reduceing pf & esi contribution . With regards Ashe
From India, Dehra Dun
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4From India, Dehra Dun
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Minimum wages should not be splitted for PF contribution which is paid on basic+DA ESIC is paid on gross salary.
From India, Pune
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From India, Pune
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The minimum wage cannot be split at all. In fact, there was a hearing by the High Court in August where it was stated that Uniform allowances will also be considered as a part of the Basic salary. Consequently, PF will be deducted and paid by the employers on Basic+DA+Uniform allowance thereafter. This ruling applies to both workers and staff. You can inquire about it.
Thanks,
Garima
From India, Lucknow
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Thanks,
Garima
From India, Lucknow
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Dear Member,
Please see the below link for PF office clarification regarding the salary.
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All the best
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From India, Vijayawada
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Please see the below link for PF office clarification regarding the salary.
<link outdated-removed> (Search On Cite | Search On Google)
All the best
<link outdated-removed> (Search On Cite | Search On Google)
From India, Vijayawada
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Vide Circular No.: Coord/4(6)2003/Clarification/ Vol-II/ Dated: 23-05-2011, Mr K.C. Pandey Addl. Central P.F.Commissioner(Compliance) Employees Provident Fund Organization (Ministry of Labour & Employment, Govt. of India), Head Office, Bhavrshya Yidhr Bhawan, 14, Bhikaiji Cama Place. New Delhi prohibited splitting of Minimum Wages for the purpose of PF contribution.
There is very good News in this regard. The Delhi High Court in the matter of Pvt Security Industries vs EPFO on 30-08-2011 by the order of Hon’ble S.Muralidhar has granted limited stay of the circular .Similarly Andhra Pradesh High Court on 29.09.2011 has granted interim stay in Writ Petitions filed before the said Court.
Therefore the Circular No.: Coord/4(6)2003/Clarification/ Vol-II/ Dated: 23-05-2011of Mr K.C. Pandey Addl. Central P.F.Commissioner(Compliance) Employees Provident Fund Organization (Ministry of Labour & Employment, Govt. of India), Head Office, Bhavrshya Yidhr Bhawan, 14, Bhikaiji Cama Place. New Delhi - 110 066 prohibiting splitting of Minimum Wages for the purpose of PF contribution has now come for Judicial review and its enforcement is subject to the legal decision.
From India, Madras
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There is very good News in this regard. The Delhi High Court in the matter of Pvt Security Industries vs EPFO on 30-08-2011 by the order of Hon’ble S.Muralidhar has granted limited stay of the circular .Similarly Andhra Pradesh High Court on 29.09.2011 has granted interim stay in Writ Petitions filed before the said Court.
Therefore the Circular No.: Coord/4(6)2003/Clarification/ Vol-II/ Dated: 23-05-2011of Mr K.C. Pandey Addl. Central P.F.Commissioner(Compliance) Employees Provident Fund Organization (Ministry of Labour & Employment, Govt. of India), Head Office, Bhavrshya Yidhr Bhawan, 14, Bhikaiji Cama Place. New Delhi - 110 066 prohibiting splitting of Minimum Wages for the purpose of PF contribution has now come for Judicial review and its enforcement is subject to the legal decision.
From India, Madras
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Copy of PF Circular with Judgement copy is enclosed for ready reference. Regards, sundararaman
From India, Madras
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From India, Madras
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Dear Members,
For your information, reference, and records, another landmark verdict was given by the EPF Appellate Tribunal in Indore regarding the splitting of Minimum Wages for PF Contribution, which has been a subject of dispute.
Regards,
B. Sundararaman
Please refer to the attachment.
From India, Madras
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For your information, reference, and records, another landmark verdict was given by the EPF Appellate Tribunal in Indore regarding the splitting of Minimum Wages for PF Contribution, which has been a subject of dispute.
Regards,
B. Sundararaman
Please refer to the attachment.
From India, Madras
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