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dear
minimum wages can not be bifurcated for the sake of saving PF however min wages alows it.but now supreme court has given judgement in the case of Group four security.if anyone have its judgement copy can pls forward it.
tks
j s malik

From India, Delhi
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Thanks for the reply, also i have discussed with lawyers and result i got is that yes we can bifuracte into basic and hra but we have to deduct the PF on minimum wage. It means the min. wage for Haryana is Rs.3640 for unskilled and we are paying him Rs.5640/- so we can divide it into
Basic 3640
HRA 2000
and we will deduct the PF on 3640, which is fair.
Regards,
Deepak

From India, Gurgaon
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Dear Friends,
I just want to enquire whether PF & ESIC contribution made by employees is a part of minimum wage or not?
suppose the tax slab for skilled workers for a region is 3500/-Rs- Does that mean according to act that worker should be paid Rs 3500/- as take home salary ?..Plz explain

From India, Madras
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Dear All,

I think whether you bifurcate the minimum amount of wages or not depends on company policy. We just have to ensure that the employee is paid the minimum rate fixed by the government. Accordingly, we have to calculate the PF.

Regards,
Namrata

From India, Mumbai
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Hi,

Minimum wage only refers to the basic amount declared by the state from time to time, excluding any other components. The PF deduction depends on the basic amount; for example, if the basic wage is 3550, it comprises 3124 as take-home wage and 426 as the employee's share of PF. However, if someone pays more than 3550, it is welcome, and they can segregate it as per their own requirements. Nevertheless, the basic wage should not be less than 3550 in your case.

Regards,
Arun

From India, Delhi
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I also need clarification like our company is paying conveyance on working days and pf esi donot deducted from conv. hence we have bifercated 50% of minimum wage is it right Regards, Dinesh
From India, Pune
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Hi, absolutely, Minimum Wage cannot be bifurcated. You can refer to one of the rulings given by the Chandigarh Court regarding this matter, which is also available on the same site. Please search for it. If not found, provide your email, and I can forward the same.

Regards,
Purna

From India, Bhubaneswar
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Dear Friends,

I too agree with Kuljit that minimum wages should not be split. In cases where these bifurcations are made, you will see that Basic+DA is always equal to or more than the minimum wages. If this is not the case, it is a non-conformity.

Guys, this is my opinion. Please let me know if I am wrong.

Regards,
Sandeep K.

From India, Vadodara
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Dear all Pl find attached the ruling copy for ref. regards maahiein
From Singapore
Attached Files (Download Requires Membership)
File Type: pdf Court Ruling.pdf (685.3 KB, 603 views)

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Dear Friends,

PF will have to be calculated on the prescribed Minimum Wage. Therefore, it is a clear inference that bifurcation of the Minimum Wage is not really the correct thing to do. In the example you have stated, PF will be deducted on Rs. 100.

Vasant Nair


From India, Mumbai
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