Wages includes HRA also under Minimum wages Act. whether PF Contribution is to be made for HRA included in the Minimum Wages. Whether bonus is to be paid for this portion of HRA also?Any case laws?
From India, Coimbatore
4From India, Coimbatore
PF has to be on min. wages. If you are paying even one Re more than min. wages, then you can bifurcate. PF is on Basic + DA. pon
From India, Lucknow
From India, Lucknow
As per SC order, only the trainees engaged under Apprentice Act are not eligible for EPF. Others are covered. pon
From India, Lucknow
From India, Lucknow
Hi, Can you please let me know what have we to do for a start up company regarding pf. please help me on this.
From India, Hyderabad
From India, Hyderabad
Hi,
You can bifurcate minimum wages in to various allowances, provided your state minimum wages notification permits you to do so.IF your notification says that minimum wages are the basic wages and DA is seprately announced and bifurcation is prohibited, then you can not., otherwise you can very well bifurcate the minimum wages in to HRA and other allowances.
Moreover , HRA is exempted from PF as per definition of Basic wages of EPF Ac
regds
anil kaushik
From India, Delhi
You can bifurcate minimum wages in to various allowances, provided your state minimum wages notification permits you to do so.IF your notification says that minimum wages are the basic wages and DA is seprately announced and bifurcation is prohibited, then you can not., otherwise you can very well bifurcate the minimum wages in to HRA and other allowances.
Moreover , HRA is exempted from PF as per definition of Basic wages of EPF Ac
regds
anil kaushik
From India, Delhi
Dear All,
I agree with Pon1965, trainees and even part time employees are also covered under EPF act. HRA doesn't form a part of minimum wage and it is not taken generally for calculation of PF contribution.
Regard's
Shaikh
From India, Bhubaneswar
I agree with Pon1965, trainees and even part time employees are also covered under EPF act. HRA doesn't form a part of minimum wage and it is not taken generally for calculation of PF contribution.
Regard's
Shaikh
From India, Bhubaneswar
Hi, Vidhya, There is no provision of HRA is content with Minimum Wages Act. That is only Basic wages to skilled/semi skilled/unskilled worker. Rgds
From India, Mumbai
From India, Mumbai
Dear Vidya Tangavel & all others:
After going through various queries and replies by the respondents, I would like all of you to note the following points and take proper steps:
1. PF is paid on basic, DA & any other food concession given. No other allowances should be taken for PF contribution
2. When the Act is very clear, why we need case laws. No case laws is required to comply as per Act unless there is doubt in the interpretation and any amendment is there or any court directions in specific cases are there.
3. Bonus is paid on the basic + DA and again no other allowances should be taken. Bonus is paid to the employees whose basic + DA is upto Rs.10,000/- per month and max bonus payable is Rs.3500/-. Employees who have worked for min.30 days in a financial year are eligible to receive bonus.
4. All categories of employees including trainees (except trainees under Apprenticeship ACt) are to be covered under PF.
5. to: Mrs.Mrudula Potula - For a start up company, if your company is engaging 20 or more persons directly or indirectly, you have to cover your company under PF. First, you have to submit a registration in a proforma wherein you have to fill-in your company details (format available in the EPFO website) and keep the relevant records for verification by enforcement officer to obtain a code. First go through the EPFO website for the records to be kept ready for inspection when you submit proforma and also meet the Enforcement officer of your area who will come to your plant personally and act as per his/her advice.
Based on the above, post your query if you need any clarification
K.Ramachandra
Bangalore
After going through various queries and replies by the respondents, I would like all of you to note the following points and take proper steps:
1. PF is paid on basic, DA & any other food concession given. No other allowances should be taken for PF contribution
2. When the Act is very clear, why we need case laws. No case laws is required to comply as per Act unless there is doubt in the interpretation and any amendment is there or any court directions in specific cases are there.
3. Bonus is paid on the basic + DA and again no other allowances should be taken. Bonus is paid to the employees whose basic + DA is upto Rs.10,000/- per month and max bonus payable is Rs.3500/-. Employees who have worked for min.30 days in a financial year are eligible to receive bonus.
4. All categories of employees including trainees (except trainees under Apprenticeship ACt) are to be covered under PF.
5. to: Mrs.Mrudula Potula - For a start up company, if your company is engaging 20 or more persons directly or indirectly, you have to cover your company under PF. First, you have to submit a registration in a proforma wherein you have to fill-in your company details (format available in the EPFO website) and keep the relevant records for verification by enforcement officer to obtain a code. First go through the EPFO website for the records to be kept ready for inspection when you submit proforma and also meet the Enforcement officer of your area who will come to your plant personally and act as per his/her advice.
Based on the above, post your query if you need any clarification
K.Ramachandra
Bangalore
Dear sir,
P.F. amount is only paid on our minimum basic wages or you can pay more than that. but paying less than the minimum basic wages is illegal and the house rent allowance is never been calculated for P.F. contribution
From India, Bhubaneswar
P.F. amount is only paid on our minimum basic wages or you can pay more than that. but paying less than the minimum basic wages is illegal and the house rent allowance is never been calculated for P.F. contribution
From India, Bhubaneswar
Dear Vidhya
You can pay on any allowances but for the benefits of company we use to calculate the P.F. on our minimum basic wages because the payment was from both employee and employer side so we avoid making more expenses for our work force. but if your company is in a good position and your employees are getting good salary packages then you can add any allowances.
One more thing that you can restrict the P.F. payment up to 6,500 on basic wages.
Bonus is paid on 8.33% of annual basic payment
You can contact me directly at
From India, Bhubaneswar
You can pay on any allowances but for the benefits of company we use to calculate the P.F. on our minimum basic wages because the payment was from both employee and employer side so we avoid making more expenses for our work force. but if your company is in a good position and your employees are getting good salary packages then you can add any allowances.
One more thing that you can restrict the P.F. payment up to 6,500 on basic wages.
Bonus is paid on 8.33% of annual basic payment
You can contact me directly at
From India, Bhubaneswar
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf