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Wages for pf act


I m working in a construction company in gurgaon. We have awarded the work order to the different contractors for Labour Supply in which following rates are mentioned below for Supply of Skilled & Un Skilled Labour for 8 hrs.

Supply of Skilled Labour for 8 Hrs. @ 300.00 per day

Supply of Unskilled Labour for 8 Hrs. @ 200.00 per day


Can we split the rates in respect of compliances under provident fund act.

(Such as Basic Wages @ Rs 250/- and Washing Allowance @ Rs 50/- for Skilled Labour)

and pay the Basic wages as per minimum wages of Haryana Govertment (i.e. Rs. 191.04/- per day ) for minimum wages to Un Skilled Labour.


And also i have an doubt that, can we reduce the wages for compliances under Provident Fund Act.




 4 Replies

Sudhir Kumar, Advocate (Advocate)     04 November 2012

You cannot

V. VASUDEVAN (LEGAL COUNSEL)     05 November 2012

Washing Allowance is permissible allowance, for certain specific industries, and for constrcution industry,

washing allowance is a necessary component. Hence PF need not be paid on the same


darshana sawant (associate consultant)     06 November 2012

dear sir,


You can pay the minimum wages such as basic and special allowance as declared by the Govt.  so that your PF burden will be on that, so also bonus and gratuity.  Rest of the amount you can split into allowances, if there are any statutory allowances mandatory by the govt, then put that amount in to those allowances.  You cannot , in any case, pay anything below the minimum wages.

Gyana Mishra (Service)     18 November 2012

My understanding, You need to pay Basic as minimum wages and need to pay PF on that. Amount can be biforcated into Basic, HRA, ESI, PF,LWF.

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