Mayur Dhirwani (COO) 16 September 2011

Cab basic wages be reduced upto to minimum wages

Hi Everybody,

One small question? As we all are aware that in April 2011 EPFO came with a circular specifying that PF is to be deducted on minimum wages prescribed for the state which was duly complied to.

Now in July 2011, Punjab and Haryana High court has arrived at a judgement that basic wages can be less than minimum wages and that any deduction on PF on basic wages less than minimum wages is correct in the eyes of law.

In UP the basic wage for a unsklled labour is 100 Rs per day and minimum wage is 161.15 per day. 61.15 being Variable Dearness Allownace. My client wants to know if he can again start deduction PF on 100 Rs basic wage in the wake of the said judgment? He has submitted PF on 161.15 for 4 months now. can this be reduced in the wake of this judgement?

-Mayur

Reply Follow

3 Replies

(Guest)

Dear Mayur,

Any court judgment applies only on the individual case on which the judgment has been delivered. The said judgment does not have universal effect in all the cases unless the main law is amended appropriately, or the Government of India/State issues its decision to that effect, or the judgment is ordered by the competent court to be made generally applicable on all such cases.

So, if your client is not the same person concerning to the judgment, the said judgment cannot be applied in his case. However, by filing a separate case and getting a specific judgment on that on the analogy of the said judgment of the Punjab & Haryana High Court, he can also avail the benefit.

2 Like

Mayur Dhirwani (COO) 18 September 2011

Thanks a lot Sir.