Dear Friends,
The query is whether minimum wage rate declared by Government be splitted in to various components. The query is not on what is basic wages for PF. What is basic wages for PF is debatable subject and this subject is sub-judiced. One of my friends has just made copy paste on what is basic wages for PF with judgement as given therein which is totally relevant here.
The queriest lady is from Delhi and as per the notification dated 03.03.2017 minimum wage rate for unskilled is Rs.13350/-. She wants to split this minimum wage of Rs.13350 in to Basic (6675), HRA (3338) and special Allowance (3337).
First of all, what we need to see is what is minimum rate of wages consist of.
Minimum wage rate consist of:
(i) Basic rate of wages and special allowance called the cost of living allowance;
(ii) Basic rate of wages with or without cost of living allowance and the cash value of any concession like supplies of essential commodities at concession rate;
(iii) All inclusive rates comprising of Basic rate, cost of living allowance and cash value of concession if any.
When the minimum wage rate consists of above components then where is the question of splitting it in to other than those components?
In my view, queriest can not include HRA in minimum wage rate and she should make PF deduction on the entire amount of Rs.13350/-.
From India, Mumbai
2555The query is whether minimum wage rate declared by Government be splitted in to various components. The query is not on what is basic wages for PF. What is basic wages for PF is debatable subject and this subject is sub-judiced. One of my friends has just made copy paste on what is basic wages for PF with judgement as given therein which is totally relevant here.
The queriest lady is from Delhi and as per the notification dated 03.03.2017 minimum wage rate for unskilled is Rs.13350/-. She wants to split this minimum wage of Rs.13350 in to Basic (6675), HRA (3338) and special Allowance (3337).
First of all, what we need to see is what is minimum rate of wages consist of.
Minimum wage rate consist of:
(i) Basic rate of wages and special allowance called the cost of living allowance;
(ii) Basic rate of wages with or without cost of living allowance and the cash value of any concession like supplies of essential commodities at concession rate;
(iii) All inclusive rates comprising of Basic rate, cost of living allowance and cash value of concession if any.
When the minimum wage rate consists of above components then where is the question of splitting it in to other than those components?
In my view, queriest can not include HRA in minimum wage rate and she should make PF deduction on the entire amount of Rs.13350/-.
From India, Mumbai
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Delhi - Minimum Wages w.e.f. 01.10.2012 (1).pdf
Minimum Wages in Maharashtra for the period January 2018 to June 2018.xls