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aman.dabas7590@gmail.com
Minimum wages in delhi is 13936 w.e.f 01-10-2017
Question no 1 .
can we fix salary like this
basic 5000
da 2000
hra 2000
cca 1000
others 3936
total :- 13936
esi deducted on gross and pf deduct on basic.
Question no 2 .
is it mandatory to put up minimum wages in basic head??
Question no 3
what is the lower limit of wages/salary on which pf deductible ?

From India, New Delhi
umakanthan53
6018

Dear friend, Wages/salary of industrial employees, particularly where it comprises of different components, has to be taken as a single package, whether it is industry wages or statutory minimum wages. However, in case of difference between them in respect of their components number-wise or amount-wise, their parity should be determined by deleting those components which are excluded in the definition of the term " wages " defined u/s 2(h) of the Minimum Wages Act,1948 from the industry wage-structure. After deletion of the excluded components from the industry wages, if still it remains on par with or above the sum total of the statutory minimum wages, it is compliance with the Act; if it falls below, the short fall should be made good to the extent. This is the ratio decidendi of the judgment of the Supreme Court in AIRFRIEGHT Ltd v. State of Karnataka [1999 - LLR -1008 ].
Therefore,
the question no.1 can be answered only if the nature/type of the "other allowances" comprising of Rs.3936/= is known.
Question no.2: Not mandatory.
Question no.3: Employee's contribution to EPF is to be deducted @ 12% on the sum total of his basic and dearness allowance only.
But, revising these components so as to reduce the existing amount of contribution is prohibited under the EPF&MP Act,1952

From India, Salem
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