I agree with both the seniors, but I want to ask, what if the HRA Act is applicable separately to the state? Then there is no question of considering HRA in minimum wages. Also, PF should be deducted on Basic + DA. But in some cases, I have seen that employers are bifurcating the Basic to lessen the PF liability, although they are paying well above the minimum wages. They do this under the head of washing allowance, heat allowance, or canteen allowance. This practice surely reduces the PF liability on them. When asked about the legality of this practice, they mention that they have the approval letter from the local Labour Commissioner.
For example, if the Basic minimum wage is 7000, then 5000 as basic & 2000 as allowances. Can this be done?
From India, Pune
Acknowledge(0)
Amend(0)
94For example, if the Basic minimum wage is 7000, then 5000 as basic & 2000 as allowances. Can this be done?
From India, Pune
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.