Pf Diduction

HR. EXECUTIVE

Dear Senior,

   I am working in  a company as a payroll executive. but we are fasing here a criticul problem. This company not diduct pf on minimum wages. I think pf diduct on minimum basic becz delhi minimum wages Basic + D.A..

 
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Sr.Manager-human resources

i couldnt understand what you mean by minimum basic . provident fund  deduction should be on basic wages and D.A., and retaining allowance if any.

 
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HR. EXECUTIVE

Currently delhi minimum basic is 3934(basic + da) but a company diduct pf on 2984, 3600,2800, 2700,etc

 
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Sr.Manager-human resources

As a HR executive, You should take the initiative to properly advice the management.

 
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LABOUR CONSULTANT

AS PER PF ACT ,PF DEDUCTION IS TO BE MADE FROM BASIC AND DA.IF NOT MAKE A COMPLAINT TO THE PF AUTHORITIES

 
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Thanks Mr. Badrinath, for giving positive suggestion.   Most of the employers are not following the principle what you are suggesting.  They bifurcate the minimum wages into equal two parts, naming the first half as basic and the remaining in several parts as HRA, CCA, Conveyance etc. (whatever name they like) and deduct PF only on the first half part.

 
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Sr.Manager-human resources

Thanks Mr.Prabhakar. normally in most of the companies, the employees are being  exploited.  statutory obligations  are denied  and  legal benefits are not given properly. one of the reason(according to me) is most of the HR managers are not legally qualified persons who are unable to properly advice the management  and some employers practice unethical standards.some of the management advocates also give wrong advice to employers and also to employees which leads to unnecessary confilicts.my view is "law should be given utmost importance".after all law has been framed to safegaurd the interest of the public, which all should realise.

 
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HR. EXECUTIVE

I advised the management but he ignore it my sugasation.

 
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Sr.Manager-human resources

put your suggestion in writing.have a copy with you. thats the end of your role. let the management face the consequences, if any issue comes..

 
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Can hon'ble members of this club kindly help me to find out the answer for this question. Whether the employer has got a right to bifurcate or multifurcte the minimum wages notified by the appropriate Government? If so, is there any law, rule, bye-law, notification or any committee recommendation fixing the ratio under different heads for this bi-furcation (kindly name the rule etc.). For example, is there any rule to say at least 50% of the minimum wages should be Basic Pay, only 30% can be H.R.A or conveyance allowance etc.or it is upto the employer?
 
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