Can the minimum wages be splitted into various components

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2010 Can the minimum wages be splitted into various components in order to reduce the PF contribution laiblity by employer.
As there is no reference is given in the PF Act that the PF contribution has to be paid on minimum wages.

Its only saying that PF contribution has to be 12% of emoluments(Basic+DA).

Or if there is some other way to reduce the PF liablity ..then Pls suggest me.

CA Ankit Shah

CA Ankit Shah (Expert)

17 November 2010 As per act,
https://www.epfindia.gov.in/payments.htm

only basic and DA included for 12%, by that you can split amount to reduce PF contribution.

https://www.epfopune.gov.in/dos_donts.html

9) If the wages drawn is more than Rs. 6500/-, intimate your willingness to contribute on the whole salary as per higher rate to Employees' Provident Fund Organisation through employer. Employer can also contribute on the whole amount drawn as wages under intimation to Employees' Provident Fund Organization.

Conclusion: up to 6500 @12% and for 6501 limited to 6500@12%
Employee Employer
A/c No 1: PF contribution Account 12.....3.67
A/c No 2: PF Admin account 0..... 1.10
A/c No 10: EPS Account 0.....8.33
A/c No 21: EDLIS account 0.....0.50
A/c No 22: EDLIS admin account 0.....0.01
12 %..... 13.61%

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