Dear Freinds
I want to know Minimum Wage act definition actually prevail in HR.
Also in addition i want to know that is HRA is the Part of Minimum Wage or not
if yes
1) Then PF is deduct on Minumum Wage(Inclusive HRA)
2) Also Bonus is Calculating on Minimum Wage or Basic Wage
As per Act at present Bonus calculating on Basic Wage.
Please Reply
Sandeep Goyal
From India, Gurgaon
I want to know Minimum Wage act definition actually prevail in HR.
Also in addition i want to know that is HRA is the Part of Minimum Wage or not
if yes
1) Then PF is deduct on Minumum Wage(Inclusive HRA)
2) Also Bonus is Calculating on Minimum Wage or Basic Wage
As per Act at present Bonus calculating on Basic Wage.
Please Reply
Sandeep Goyal
From India, Gurgaon
dear snadeep
as per the minimum wages act ,minimum wages includes HRA but different judgements have come in this regard and accordingly PF dept has issued circulars that you have to deduct PF on minimum wages and there should not be bifurcation of minimum wages to save PF .bonus is calculated on basic+DA.
tks
j s malik
From India, Delhi
167as per the minimum wages act ,minimum wages includes HRA but different judgements have come in this regard and accordingly PF dept has issued circulars that you have to deduct PF on minimum wages and there should not be bifurcation of minimum wages to save PF .bonus is calculated on basic+DA.
tks
j s malik
From India, Delhi
Dear Sandeep Goyal,
HRA is not a part of Minimum Wages. You can bifurcate minimum wages in Basic + DA only.
PF is deducted on minimum wages (Basic + DA) not on HRA.
Bonus is calculated on basic wage.
Hope this will meet your requirement.
Regards
Pankaj Chandan
From India, New delhi
HRA is not a part of Minimum Wages. You can bifurcate minimum wages in Basic + DA only.
PF is deducted on minimum wages (Basic + DA) not on HRA.
Bonus is calculated on basic wage.
Hope this will meet your requirement.
Regards
Pankaj Chandan
From India, New delhi
Dear Sandeep
By virtue of sec.4 read with sec.11 throws light to elaborate the definition of minimum wage by which it is only Basic pay including Dearness Allowance. so far P.F. is concern the act is separate and complete code and not at all linked with M.W.Act and it has separate definition u/s.2(b).
Secondly, Bonus is to be calculated on basic including D.A. in accordance with sec.2(21) of the said act and by virtue of sec.12 company could calculate the bonus upto 3500 even if ones salary is more than 3500.
Regards,
KIRAN KALE
From India, Kolhapur
By virtue of sec.4 read with sec.11 throws light to elaborate the definition of minimum wage by which it is only Basic pay including Dearness Allowance. so far P.F. is concern the act is separate and complete code and not at all linked with M.W.Act and it has separate definition u/s.2(b).
Secondly, Bonus is to be calculated on basic including D.A. in accordance with sec.2(21) of the said act and by virtue of sec.12 company could calculate the bonus upto 3500 even if ones salary is more than 3500.
Regards,
KIRAN KALE
From India, Kolhapur
Dear Super Moderator (JS Malik)
With reference to your input PF decduction, you have mentioned that "PF dept has issued circulars that you have to deduct PF on minimum wages and there should not be bifurcation of minimum wages to save PF".
Can you plz give us any detail of such circular issued by the PF dept. If you have scanned copy of such circular plz send as attachment.
regards,
Kamal Prasoon
From India, Pune
With reference to your input PF decduction, you have mentioned that "PF dept has issued circulars that you have to deduct PF on minimum wages and there should not be bifurcation of minimum wages to save PF".
Can you plz give us any detail of such circular issued by the PF dept. If you have scanned copy of such circular plz send as attachment.
regards,
Kamal Prasoon
From India, Pune
Dear kprasoon
The opinion given by Mr. Malik is perfectly right and supported by several judgements.
Once the path has been illuminated for you, help yourself in performing the journey. One should not burden the guide to carry the person all the way to the destination.
The matter has been discussed, with documentary evidence, several times in CiteHR. Please SEARCH using the "research" option at the top of the page.
Warm regards.
From India, Delhi
The opinion given by Mr. Malik is perfectly right and supported by several judgements.
Once the path has been illuminated for you, help yourself in performing the journey. One should not burden the guide to carry the person all the way to the destination.
The matter has been discussed, with documentary evidence, several times in CiteHR. Please SEARCH using the "research" option at the top of the page.
Warm regards.
From India, Delhi
Dear Mr Raj Kr. Hansda (Super Moderator)
Thanks for your reply with well decorated literary terms.
Let me introduce myself first, I am Kamal Prasoon Sinha, an HR Generalist & Administration Professional with 12.6 years of core HR/IR experience, currently working as Manager(Unit Head),HR & Admin with an engineering/electronics manufacturing organization in Pune.
Now let’s come to the point. In my response to the input given by Mr. JS Malik, I had requested for any circular issued by the PF Dept. When I use the word PF Dept, I mean the central authority of PF Dept in New Delhi and not any Regional PF Commissioners whose jurisdiction is restricted to that particular region/state and not to the whole country.
I have gone through the documents/circulars uploaded at CiteHR and found circulars issued by Regional PF Commissioners of few states (2 or 3) on burification of minimum wages for PF contribution. I didn’t find any circular/notification/clarification issued by the PF head office in New Delhi or detail of any such decision taken by the Central Board of Trustees of EPFO.
As far as I know PF head office as not issued any circular with regard to PF calculation on minimum wages.
I agree with Mr. Malik that there are judgments of high courts of two-three states and also of Apex court in this regard but at the time notification of the central authority of PF Dept in New Delhi is also required.
The established custom is that whenever a high courts/apex court judgement comes, the affected ministry/dept/unit issue a separate notification with regard to that judgement.
If you remember after the Apex Court judgment on PF contribution on Leave encasement, the PF head office immediately issued a clarification on the matter that was addressed to all Regional PF Commissioners. But on the instant matter (burification of minimum wages for PF contribution) no such circular/notification/clarification issued by them.
I would appreciate your further input on the matter.
Regards,
Kamal Rasoon Sinha
From India, Pune
Thanks for your reply with well decorated literary terms.
Let me introduce myself first, I am Kamal Prasoon Sinha, an HR Generalist & Administration Professional with 12.6 years of core HR/IR experience, currently working as Manager(Unit Head),HR & Admin with an engineering/electronics manufacturing organization in Pune.
Now let’s come to the point. In my response to the input given by Mr. JS Malik, I had requested for any circular issued by the PF Dept. When I use the word PF Dept, I mean the central authority of PF Dept in New Delhi and not any Regional PF Commissioners whose jurisdiction is restricted to that particular region/state and not to the whole country.
I have gone through the documents/circulars uploaded at CiteHR and found circulars issued by Regional PF Commissioners of few states (2 or 3) on burification of minimum wages for PF contribution. I didn’t find any circular/notification/clarification issued by the PF head office in New Delhi or detail of any such decision taken by the Central Board of Trustees of EPFO.
As far as I know PF head office as not issued any circular with regard to PF calculation on minimum wages.
I agree with Mr. Malik that there are judgments of high courts of two-three states and also of Apex court in this regard but at the time notification of the central authority of PF Dept in New Delhi is also required.
The established custom is that whenever a high courts/apex court judgement comes, the affected ministry/dept/unit issue a separate notification with regard to that judgement.
If you remember after the Apex Court judgment on PF contribution on Leave encasement, the PF head office immediately issued a clarification on the matter that was addressed to all Regional PF Commissioners. But on the instant matter (burification of minimum wages for PF contribution) no such circular/notification/clarification issued by them.
I would appreciate your further input on the matter.
Regards,
Kamal Rasoon Sinha
From India, Pune
Dear kprasoon
Thanks for the information and introduction.
Generally the Central Board of Trustees or even the Executive Committee do not issue any circular (for mass consumption); and such task is delegated to the CPFC or RPFCs.
Since the Minimum Wages Act 1948 is an entirely separate statute administered separately, and the The EPF & MP Act, 1952 a different Act, under which legal provisions have been made for the EPFO organization; it stands to reason that such circulars can not be issued, suo moto, by the Central Board of Trustees or even the Executive Committee; who in any case, generally, do not issue any circular. Such administrative task is delegated to the Addl. Central P F Commissioner ( Compliance) or Regional P F Commissioner ( F & A) who sit in the Corporate Office, New Delhi.
Under such circumstances, where there are different laws/Acts involved which are administered by different government authority; Court rulings are the best source for such information and action therein.
Since you are so keen on this matter about CIRCULARS; you can find out more from your Pune location itself by contacting the RPFO at Pune; where the concerned officers also act as Public Information Officer (under the Right to Information Act 2005 ) :
Shri N.K.Sakpal, RPFC II,
Post Box No. 226, IInd Floor, Pune Cantonment Board Building, Golibar Maidan, Pune - 411 001
Phone : 020-26402120/ 26454231
Shri S. Padmanabhan, RPFC I, IInd & IIIrd Floor, Pune Cantonment Board Building, Near Golibar Maidan, Pune - 411 001
Phone : 020-26444039 Fax : 020-26456145
In any case; my humble submission was to; make you help yourself in searching for the information you require. It seems my appeal has gone un-heeded. However, I do hope that this time, I am not compelled to post a re-joinder again.
Warm regards.
From India, Delhi
Thanks for the information and introduction.
Generally the Central Board of Trustees or even the Executive Committee do not issue any circular (for mass consumption); and such task is delegated to the CPFC or RPFCs.
Since the Minimum Wages Act 1948 is an entirely separate statute administered separately, and the The EPF & MP Act, 1952 a different Act, under which legal provisions have been made for the EPFO organization; it stands to reason that such circulars can not be issued, suo moto, by the Central Board of Trustees or even the Executive Committee; who in any case, generally, do not issue any circular. Such administrative task is delegated to the Addl. Central P F Commissioner ( Compliance) or Regional P F Commissioner ( F & A) who sit in the Corporate Office, New Delhi.
Under such circumstances, where there are different laws/Acts involved which are administered by different government authority; Court rulings are the best source for such information and action therein.
Since you are so keen on this matter about CIRCULARS; you can find out more from your Pune location itself by contacting the RPFO at Pune; where the concerned officers also act as Public Information Officer (under the Right to Information Act 2005 ) :
Shri N.K.Sakpal, RPFC II,
Post Box No. 226, IInd Floor, Pune Cantonment Board Building, Golibar Maidan, Pune - 411 001
Phone : 020-26402120/ 26454231
Shri S. Padmanabhan, RPFC I, IInd & IIIrd Floor, Pune Cantonment Board Building, Near Golibar Maidan, Pune - 411 001
Phone : 020-26444039 Fax : 020-26456145
In any case; my humble submission was to; make you help yourself in searching for the information you require. It seems my appeal has gone un-heeded. However, I do hope that this time, I am not compelled to post a re-joinder again.
Warm regards.
From India, Delhi
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