Hi,
Can anyone pls give me a solution to below query.
Recently PF vigilance officer visited to our company and given a notice stating that we are not giving minimum Basic to our employees. They are saying we need to maintain State Minimum Wage as a basic+VDA and make contributions accordingly.
But we are paying minimum wages to employees and our basic start from 3k.
Can one give your input whether we need to maintain PF Basic as per Minimum wage???
From India, Hyderabad
Can anyone pls give me a solution to below query.
Recently PF vigilance officer visited to our company and given a notice stating that we are not giving minimum Basic to our employees. They are saying we need to maintain State Minimum Wage as a basic+VDA and make contributions accordingly.
But we are paying minimum wages to employees and our basic start from 3k.
Can one give your input whether we need to maintain PF Basic as per Minimum wage???
From India, Hyderabad
Though there is no statute which states that PF should be contributed at least on minimum wages fixed, the PF authorities are insisting on payment of contributions on minimum wages. Whether the EPF Organisation has any right to direct so is also a question of dispute since the authority for enforcing minimum wages is the state's labour department. However, PF contribution being a social security measure which is meant to benefit the employees and at the same time there are employers who show the basic salary of employees very low so as to reduce their burden of contribution to PF (as also to reduce Bonus and similar other payments like gratuity, leave encashments which are also worked out on basic + DA, if applicable) the demand by the PF authorities to pay contributions on minimum wages is maintainable and valid.
Regards,
Madhu.T.K
From India, Kannur
4249Regards,
Madhu.T.K
From India, Kannur
The labour officer is correct. EPF subscription should be deducted on the minimum wages fixed by the State Government + DA or VDA as periodically notified. S. Krishnamoorthy
From United States, Roslindale
From United States, Roslindale
Hi
It is the State labour responsibility to ensure minimum wages as to ensure the contribution so as to collect .PF now are very much insisting on Minimum wages and insists on basic and DA as per the State labour ..
what is the implication towards PF if the organisation not maintained minimum wages and not given as per that , Some decisions also come in favour of PF to pay the penality for the less contribution paid due to minimum wages not maintained.. i request the implication towards this if penalised & how we can challenge the same , Cant say s due to ignorance...
What we can say at that point of time ... Kindly throw some of your thoughts..
Nimesh Paul
Stringz Cochin
From India, Kochi
It is the State labour responsibility to ensure minimum wages as to ensure the contribution so as to collect .PF now are very much insisting on Minimum wages and insists on basic and DA as per the State labour ..
what is the implication towards PF if the organisation not maintained minimum wages and not given as per that , Some decisions also come in favour of PF to pay the penality for the less contribution paid due to minimum wages not maintained.. i request the implication towards this if penalised & how we can challenge the same , Cant say s due to ignorance...
What we can say at that point of time ... Kindly throw some of your thoughts..
Nimesh Paul
Stringz Cochin
From India, Kochi
Dear Team members, The Section 6 of The Employees Provident Fund and Miscellaneous Provisions Act 1952, the contribution which shall be paid by the employer to the fund shall be of the basic wages and dearness allowance and retaining allowance. The law is silent in matter relevance with the minimum wages act’s basic amount and also silent on the fact the basic should be as per minimum wages act because the central act never refers the state act on the other hand state act or rules may refers to the central act.
But it is advisable to maintain PF Basic + DA, as per Minimum wage.
With Warm Regards,
Ashish K Sharma
From India, Gurgaon
But it is advisable to maintain PF Basic + DA, as per Minimum wage.
With Warm Regards,
Ashish K Sharma
From India, Gurgaon
We refer the News of ESIC amendment in slab which was raised to a maximum slab of Rs. 15000 instead of earlier Rs. 10000 from 01.05.2010.
In this context I would like to have a suggestion to you to increase the PF slab also as the current PF slab is Rs. 6500 since long. Now due to the global financial situation it is very necessary to amend this slab because at the time of retirement at the age of 58 employee working in a private sector will get very nominal amount. It will be very hard for a person to run his family with PF amount and pension amount what he will get as per the current slab
As you are aware inflation rates are in upward trend and rates of all the necessary items has increased steeply. How can an average middle class Indian can fulfill his basic requirements from above PF amount when he retires.
I think government should change the policy and take some more effective actions keeping in mind long time inflation rate. You can understand the critical position of a person retiring at the age of 58 especially private sector employees.
Government should think about middle class family. “Poor are becoming poor day by day”
Expecting some amendments in PF slab in the new Fiscal Year.
From India, Vadodara
In this context I would like to have a suggestion to you to increase the PF slab also as the current PF slab is Rs. 6500 since long. Now due to the global financial situation it is very necessary to amend this slab because at the time of retirement at the age of 58 employee working in a private sector will get very nominal amount. It will be very hard for a person to run his family with PF amount and pension amount what he will get as per the current slab
As you are aware inflation rates are in upward trend and rates of all the necessary items has increased steeply. How can an average middle class Indian can fulfill his basic requirements from above PF amount when he retires.
I think government should change the policy and take some more effective actions keeping in mind long time inflation rate. You can understand the critical position of a person retiring at the age of 58 especially private sector employees.
Government should think about middle class family. “Poor are becoming poor day by day”
Expecting some amendments in PF slab in the new Fiscal Year.
From India, Vadodara
There is no provision under the EPF & MP Act 1952 to enforce the Minimum wages as piece rated employees who earn less than minimum wages are also coverd in r/o a covered estt.
Further there is no post of vigilance officer meant for inspecting an estt. unless and untill required to visit on a complaint.
CHANDOK--ex RPFC
Contact--09988021715
From India, Chandigarh
Further there is no post of vigilance officer meant for inspecting an estt. unless and untill required to visit on a complaint.
CHANDOK--ex RPFC
Contact--09988021715
From India, Chandigarh
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