Dear Sir,
Need your help on minimum wages. In UP, minimum wages from April 12 are Rs100 Basic + Rs74.14 DA = Rs174.14 per day. This amounts to Rs4528 per month. Based on my understanding, the monthly breakdown is Rs2600 as Basic and Rs1928 as DA.
Now, if I set Rs4550 per month for an unskilled worker and divide it as Rs2900 Basic + Rs1650 for other allowances (i.e., HRA & Conveyance), and consider Rs2900 for PF calculation, will it be effective? Can we separate Minimum Wages into Basic and Other Allowances? If we divide it, only the basic amount will be considered for PF calculation. Please advise on priority.
Regards,
Ashok
From Saudi Arabia
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Need your help on minimum wages. In UP, minimum wages from April 12 are Rs100 Basic + Rs74.14 DA = Rs174.14 per day. This amounts to Rs4528 per month. Based on my understanding, the monthly breakdown is Rs2600 as Basic and Rs1928 as DA.
Now, if I set Rs4550 per month for an unskilled worker and divide it as Rs2900 Basic + Rs1650 for other allowances (i.e., HRA & Conveyance), and consider Rs2900 for PF calculation, will it be effective? Can we separate Minimum Wages into Basic and Other Allowances? If we divide it, only the basic amount will be considered for PF calculation. Please advise on priority.
Regards,
Ashok
From Saudi Arabia
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Dear Ashok, Basic wages can be less than minimum wages. Dont split minimum wages into HRA and conveyance. Show as other allowances and deduct the PF on basic. Regards, E. T. Rao
From India
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1From India
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Dear Ashok,
Greetings for the day,
As Mr. Rao stated that minimum wages can't be bifurcated, it is true. As far as EPF deduction is concerned, the components should be (basic + DA + food conc. if any), and minimum wages consist of basic + DA, so it can't be split or bifurcated.
Thanks & Regards,
Sumit Kumar Saxena
9899669071
From India, Ghaziabad
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Greetings for the day,
As Mr. Rao stated that minimum wages can't be bifurcated, it is true. As far as EPF deduction is concerned, the components should be (basic + DA + food conc. if any), and minimum wages consist of basic + DA, so it can't be split or bifurcated.
Thanks & Regards,
Sumit Kumar Saxena
9899669071
From India, Ghaziabad
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Sir,
If you go through the definition of Minimum wages, the definition clearly says minimum wages include HRA as well. Therefore, you can split the minimum wages only as per the following components: Basic, DA, and HRA.
Regards,
Raju
From India, Madras
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If you go through the definition of Minimum wages, the definition clearly says minimum wages include HRA as well. Therefore, you can split the minimum wages only as per the following components: Basic, DA, and HRA.
Regards,
Raju
From India, Madras
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The Bombay High Court has ruled that the companies are bound to pay the prescribed minimum wages irrespective of how they calculate the wage component. -Arun Talwar
From India, Delhi
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From India, Delhi
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sri this is bhaskar . i don t no about salary bifurcation in pvt ltd companies and how much percentage take to basic wages,da,hra& other allowances.
From United States, Cambridge
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From United States, Cambridge
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Dear Ashok Minimum Wages can’t be bifurcated. As per Law, Basic + DA should be equal to Minimum wages on which PF needs to be deducted from employee salary
From India, New Delhi
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From India, New Delhi
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OK Minimum Wages can be bifurcated for the purpose of PF calculation and is legal. Stay Cool, Atom
From India, Phagwara
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From India, Phagwara
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In case of UP, the MW is equal to Basic + DA. Both components are clearly stated under the MW notification. So, if you take only Basic for the contribution of PF, you will face problems as it will result in non-compliance. PF contribution should be based on Basic + DA or any food concession.
Where there is no separate DA provided by the notification under MW, in that case, you can bifurcate.
Regards, Sanjay
From India, Delhi
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Where there is no separate DA provided by the notification under MW, in that case, you can bifurcate.
Regards, Sanjay
From India, Delhi
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