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minimum wages and pf contributions

(Querist) 15 October 2009 This query is : Resolved 
Dear Legal Experts,

I am Gopi, HR Professional in a Steel Industry. Please clarify the follwoing.

1. Can we bifercate the minimum wages of contract labour in to Basic, HRA, Spl Allowance etc.

2. If so, can we deduct pf only on basic of the contract labour.

treat the matter most urgent.


99895 88029
Raj Kumar Makkad (Expert) 15 October 2009
Mr. Gopi! It is a contract between the employer and employee which prevails. If you devide the salary as suggested by you, definitely you will have to pay/deduct PF on the basic salary as PF is deducted on basic salary, DA, Food concession and retaining allowance, if any.
H. S. Thukral (Expert) 15 October 2009
No PF as well as ESI contribution shall be payable on minimum wage amount.
m gopi (Querist) 19 October 2009
Thank u very much for your kind reply,

I came to know that , PF tribunal given the judgement as

Minimum wages fixed by Govt to contract labou, can be devided in to Basic and HRA.

Please let me see the judgment copy , if possible, for which I shall be so thankful.

M gopi
Asst Manager HR
99895 88029

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