Anonymous
16

From all the discussions above I have found that minimum wages fixed by the state governments may be spitted in the allowances to reduce the P.F. liability of employer in the light of order of Honorable of Punjab & Haryana High Court.
So far the views of Mr. PBSKUMAR are concerned it would be in litigation till the decision of Honorable Supreme Court or amendment in the Act by the parliament.
I. M. ANAND

From India, Chandigarh
Dear All,
Greetings for the day,
This is an important information from Mr. Kunwar Vikram Singh , Chairman of Central Association of Private security Industry-India clerifies
"Dear Friends,
I would like to inform you that Delhi High Court has given its orders in regard to a petition filled by CAPSI against the notification issued by the EPF department directing all PSA to deduct EPF on Minimum Wages.
Now the EPF department has given an Undertaking vide an affidavit to the Delhi High Court that that the Circular No. Coord/4/(6) 2003/Clarification/VolII/7394 dated 23.05.2011 on minimum wages has been withdrawn and has been kept in abeyance till the outcome of the SLP (C) No.20085/2011, which is pending before the Hon’ble Supreme Court. The submission of the PF department has been recorded in the order dated 01.05.15.
The Orders of the Delhi High Court is attached herewith for your information."
order enclosed for the reference.
Thanks & Regards,
From,
Sumit Kumar Saxena

From India, Ghaziabad
Attached Files (Download Requires Membership)
File Type: docx Capsi High Court orders....docx (12.1 KB, 111 views)

Dear All
PFA copy of the news item as per which the Union Labour Ministry has finalised that the proposed amendment to the EPF & MP Act 1952 will exempt HRA, Con all etc., for the payment of PF contribution with an option to join the National Pension Fund. Anybody who has got the details of the final recommendation of the Labour Ministry may please upload the details for the benefit of members.
Regards
N Nataraajhan, Sakthi Management Services (HP : + 91 94835 17402 : e-mail : )

From India, Bangalore
Anonymous
16

Hi seniors,
Please let me know Builder is to get covered it self as employer if he him self do not employ more than 10/20 persons, but employing contact labour who are covered or not covered by the contractor under various Labour Laws. If various labour law departments ask him to produce the record of project, he completed and ask the give details of the records of the contractor, but builder could not produce the records of the various contractors, because contractor do not give his records to builder and employer used to do not know that contractor is covered him self under various labour laws, but in agreement contractor admits that he shall abide all labour laws applicable on builder and shall be responsible for payment of labor engaged by him to various departments.

From India, Chandigarh
Dear Mr.Javed - Good Morning,

Refer to your query on " Splitting of Minimum Wages for EPF Contribution is Legal by EPF Appellate Tribunal against the order passed by EPF Authoroties dated 26.04.2011 under Sec.7 A of EPF Act assessing PF Dues on allowances is also illegal.

The Tribunal has observed that the employer has bifurcated the Minimum Wages in to Basic Wages, DA, HRA, Conveyance Allowance etc., the employer has been paying employee's contribution only on the Basic Wages as provided under EPF Act 1952. The EPF Authority pleaded that PF dues can never be calculated on wages lower than the Minimum Wages. Accordingly the authority has initiated proceedings under Sec.7 A of the Act, taking in to consideration of the Minimum Wages under Minimum Wages Act and directed the employer to pay the contribution so determined. The Appellate Tribunal has opined that Minimum Wages has not been defined under EPF Act, only Basic Wages is defined under the said Act. EPF Authority has no power to hold whether Minimum Wages amount to Basic Wages or not. While interpreting a provision of any Act, the court only has to interpret the law and cannot legislate it. If a provision of Law is misused and subjected to abuse of process of Law, it is for the legislature to amend, modify or repeal it, if deemed necessary.There is no compulsion to hold that the definition of Basic Wages should be equated to the definition of Minimum Wages under the Minimum Wages Act as per law settled by the courts. Employer has liable to deduct PF Contribution on Basic Wages and DA as defined under sub section 2 (b) read along with section 6 of EPF & Misc.Provisions Act 1952 and not on Minimum Wages Act 1948. Hence impugned order is set aside and appeal is allowed in the case of M/s. Syncom Healthcare Ltd Vs RPFC Indore (ATA No.448(08)2012, dated 08.09.2014)

Thanks & Regards,

V R Rao Pulipaka

From India, Chennai
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