Dear Sender Minimum wages will vary on industry to industry- It is right, that pf to be deducted on basic only Regards LKumar
From India, Madras
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What is the legal position regarding the deduction of PF on Minimum Wages declared by various State Governments? Whether the employer is right to bifurcate the Minimum Wages and deduct the PF only on basic? Please provide any case laws available in this regard.

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Dear Friends,

I have learned that the PF Commission at Faridabad, Haryana, has issued an order stating that PF will be deducted based on minimum wages. This order was issued in a case where the Honourable Court directed the organization to pay the PF from the back date along with interest and damages.

If somebody has a copy of the order from the Honourable Court and the order from the PFC, please post it.

Regards,
Dabas

From India, Delhi
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Dear Friend Minimum wage has been defined as Basic + DA in the act itself so you can’t biforcate further... Vasanth
From India, Bangalore
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Mr. Sanjay!

The P.F. contributions to be deducted on Basic+DA/VDA. The PF authorities will see the Basic and DA/VDA of the salary, and they will insist that both together should be a minimum of 50% of the total gross salary.

On the other hand, the labor authorities will observe the coverage of minimum wages on employees. The minimum wages should not be less than those declared by the labor authorities. Minimum wages vary from industry to industry.

Regards,

Karan Hyderabad

From India, Hyderabad
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