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Aniket Pathak
94

I agree with both the seniors but i want to ask that what if HRA act is applicable separately to the state then there is no question of considering HRA in minimum wages. Also PF should be deducted on Basic + DA. But in some cases I have seen that, Employers are bifurcating the Basic to lessen the PF liability although they are paying well above the minimum wages but, under the head of washing allowance, Heat Allowance, or canteen allowance. this surely reduce the pf liability on them. When asked about the legality of this practice they told that they have the approval letter of local Labour Commissioner.
Ex. If Basic Min wage is 7000 then, 5000 as basic & 2000 as allowances.
Can this be done?

From India, Pune
Srinath Sai Ram
606

"they have the approval letter of local Labour Commissioner".-Labour Commissioner is not the Competent Authority as per the Minimum Wages Act.Can you pleas upload the quoted Document, for understanding
From India, New Delhi
Aniket Pathak
94

No i cant case is not of my company.
From India, Pune
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