Minimum wages in delhi
P.C. Joshi
(Querist) 29 April 2012
This query is : Resolved
Dear Friends,
1.Can an employer split the total pay of an employee in the following manner and the agreegate may be euql or more than minimum wages notified in Delhi w.e.f. 1/4/2012:
Basic (60%) __________
HRA(30%) __________
Conveyance(10%) __________
Total/Gross ==========
2. On whaich amount PF & ESI will be deducted i.e. on basic or on gross amount.
Views of members are solicited.
Thanks ^ Regards
P.C. Joshi
Raj Kumar Makkad
(Expert) 29 April 2012
do not agree with thukral sir.
The EPF liability at present is available only up to the wages of Rs. 6500/- per month and ESI benefit is avaialble up to Rs. 10,000/- per month.
Wages for the purpose of EPF coverage include basic plus DA plus food concession plus retaining allowance, if any.
Conveyance charges/allowance is not included in the wages.
P.C. Joshi
(Querist) 29 April 2012
Thanks Raj ji and Harbhajan ji for sharing your knowledge.
Thanks
P.C. Joshi
H. S. Thukral
(Expert) 30 April 2012
The question here is not that on what amount EPF etc are payable. While paying minimum wages the employer bifurcate them into components which do not attract EPF etc.to save some amount on that. I am of the opinion that it is not permissible.
Mr. Makkad
I have been regularly going through your postings on facebook and I admire your sense of patriotism. I also have good words for your contribution on LCI. Best Wishes.
