Hi !
I am deducting PF on minimum wages for the contract labourers. But what about the amount which is more and above the minimum wages. Under which head ( allowance) I can show it so that PF issue may not be raise in future by the PF commissioner. Can any one suggest me ?
From India, Hyderabad
I am deducting PF on minimum wages for the contract labourers. But what about the amount which is more and above the minimum wages. Under which head ( allowance) I can show it so that PF issue may not be raise in future by the PF commissioner. Can any one suggest me ?
From India, Hyderabad
If you are deducting the Provident Fund Contribution for the minimum wages prescribed, you may not have any problem.
From India, Madras
294From India, Madras
Dear friend,
Your draft gives the impression as if you are paying wages to the contract labor at a higher rate than the minimum rates of wages for their employment but making contributions to the EPFO at the statutory minimum rates of wages only.
If this presumption is true, such a practice is not correct. When the actual wages paid and the prevailing statutory minimum wages are within the applicable limit of Rs. 15K but at variance, the contribution to the EPF should be calculated on the higher amount actually paid only.
However, if the higher wages paid actually comprises of more components than the minimum wages and the additional components fall within the ambit of the definition of 'wages' under the Minimum Wages Act, 1948, then the contribution can be on the basis of the basic and D.A. of the actual wages being paid only.
From India, Salem
Your draft gives the impression as if you are paying wages to the contract labor at a higher rate than the minimum rates of wages for their employment but making contributions to the EPFO at the statutory minimum rates of wages only.
If this presumption is true, such a practice is not correct. When the actual wages paid and the prevailing statutory minimum wages are within the applicable limit of Rs. 15K but at variance, the contribution to the EPF should be calculated on the higher amount actually paid only.
However, if the higher wages paid actually comprises of more components than the minimum wages and the additional components fall within the ambit of the definition of 'wages' under the Minimum Wages Act, 1948, then the contribution can be on the basis of the basic and D.A. of the actual wages being paid only.
From India, Salem
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