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Avinash Kumar Sharma (Sr. Manager HR)     30 January 2012

Pf deduction on minimum wages

Dear All,

There is a notification of central pf commissioner office in year 2011(attched) relating to non- bifurcation of minimum wages. But a contrary view is expressed by P&H High Court in it's recent ruling. Is there any Supreme Court ruling which can clear the doubts? If any then please attach the rulings.




 7 Replies

jaykumtekar (Legal Advisor)     31 January 2012

Dear Mr.Avinash Kumar Sharmaji.

There was a circular on 23.05.2011 wherein it was directed that gross minimum wages is to be taken for computation of PF contribution.

However, there was a circular by Mr.KC Pandey, Additional Central PF Commissioner (Compliance), which is attached herewith, wherein the circular dated 23.05.2011 has been kept in abeyance and need not be implemented till the decision of the Hon'ble High Court of Punjab and Haryana in the case of Assistant Provident Fund Commissioner v/s.G4S security services.

The circular attached is self explanatory and will satisfy your query.


Jay Kumtekar

Attached File : 973889463 pf circular.pdf downloaded: 1518 times
1 Like

Avinash Kumar Sharma (Sr. Manager HR)     31 January 2012

Dear Sir,

Thanks a lot for your guidance.



SRINIVASAN P (DY MANAGER - PER & ADMN)     01 February 2012

Dear Friends,

Actually the minimum wages will be announced by the respective state governments for the notified employments which will have the break up of Basic and DA (sample notification attached).  The DA will be revised for every 6 months and that also will be published in the govt gazette.  The Basic and DA will attract the PF.  As for as the other categories, the minimum wages should not be less than the national floor level wages fixed by the Cent. Govt.  Some government authorities are accepting the breakup, subject to minimum of 60% of minimum wages as Basic and 40% as allowances (HRA, Conveyance etc.  HRA  must).  If below 60% is shown as Basic they won't accept.


Srinivasan. P

Attached File : 1038907899 11768 7181 53 132292 42572 minimum wages wef 1 oct 2011.pdf downloaded: 961 times

Girish (Statutory)     14 April 2012

Hi am girish,

I am reqquried salary salary break up for the year 2012-2013, with %wise,




Dhaval Lotwala (Manager - Internal Audit)     25 May 2012

Dear Mr Kumtekar,

Has the verdict of Punjab & Haryana High Court been announced for the splitting of the wages?


Dhaval Lotwala

Yudhbir Singh Negi   13 January 2016

Hello Sirs,

I am from Delhi and my querry is " Can we split Minimum wages" for PF deduction/contribution. If no, pl send circular no. of the department. In my openion Split of minimum wages is not permissible or the employer has to contribute PF amount on minimum wages. Pl advice.


Yudhbir Singh



Kumar Doab (FIN)     16 January 2016

@ Yudhvir Singh Negi,

The query has already been addressed above.

YOu may speak to PRO/APFC in nearest/jurisdictional office of EPFO.

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