Hello, Please advise me whether splitting of minimum wages in various heads (Basic,HRA,washing allowance etc ) is legal for purpose of reduceing pf & esi contribution . With regards Ashe
From India, Dehra Dun
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Minimum wages should not be splitted for PF contribution which is paid on basic+DA ESIC is paid on gross salary.
From India, Pune
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The minimum wage can not be splitted at all. Infact there is a hearing by High court came in August, where it was said that Uniform allowances will also be considered as a part of Basic salary, thus PF will be deducted & paid by the employers on Basic+DA+Uniform allow there after. It is applicable for workers as well as staff. You can enquire about it.
THnx
Garima

From India, Lucknow
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DEAR MEMBER
PLEASE SEE THE BELOW LINK
PF OFFICE CLARIFICATION REGARDING THE SALARY .
<link outdated-removed> ( Search On Cite | Search On Google )
All the best
<link outdated-removed> ( Search On Cite | Search On Google )

From India, Vijayawada
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Vide Circular No.: Coord/4(6)2003/Clarification/ Vol-II/ Dated: 23-05-2011, Mr K.C. Pandey Addl. Central P.F.Commissioner(Compliance) Employees Provident Fund Organization (Ministry of Labour & Employment, Govt. of India), Head Office, Bhavrshya Yidhr Bhawan, 14, Bhikaiji Cama Place. New Delhi prohibited splitting of Minimum Wages for the purpose of PF contribution.

There is very good News in this regard. The Delhi High Court in the matter of Pvt Security Industries vs EPFO on 30-08-2011 by the order of Hon’ble S.Muralidhar has granted limited stay of the circular .Similarly Andhra Pradesh High Court on 29.09.2011 has granted interim stay in Writ Petitions filed before the said Court.

Therefore the Circular No.: Coord/4(6)2003/Clarification/ Vol-II/ Dated: 23-05-2011of Mr K.C. Pandey Addl. Central P.F.Commissioner(Compliance) Employees Provident Fund Organization (Ministry of Labour & Employment, Govt. of India), Head Office, Bhavrshya Yidhr Bhawan, 14, Bhikaiji Cama Place. New Delhi - 110 066 prohibiting splitting of Minimum Wages for the purpose of PF contribution has now come for Judicial review and its enforcement is subject to the legal decision.

From India, Madras
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Copy of PF Circular with Judgement copy is enclosed for ready reference. Regards, sundararaman
From India, Madras
Attached Files (Download Requires Membership)
File Type: pdf Min Wage splitting-Stayed.pdf (481.1 KB, 283 views)

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Dear Members,
For your information, reference and records.
Another landmark verdict given by EPF Appellate Tribunal, Indore with respect to Splitting of Min Wages for PF Contribution on which the dispute is going on.
Regardsm
B. Sundararaman
Please refer to the attachment.

From India, Madras
Attached Files (Download Requires Membership)
File Type: pdf EPF-Min(Nov'11).pdf (87.4 KB, 166 views)

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