MINIMUM WAGES CAN BE SPLIT INTO ALLOWANCES


In the appeal against the order of the EPF Authority under section 7A of the Act the appellant have stated that directing the appellant to deposit the dues is illegal as the EPF Authority has assessed the dues considering the allowances as ‘basic wages’.

The EPF Appellate Tribunal observed that the provident fund contribution is to be calculated on the basic wages and not upon the wages fixed under the Minimum Wages Act as already settled by the Punjab & Haryana High Court in the case of APFC Gurgaon vs. M/s. G4S Security Services (I) Ltd., 2011 LLR 316. Fixation of wage structure is within the domain of the employer. Wages can be split into allowances. Hence, order of the EPF Authority cannot sustain and appeal is allowed.

M/s. SSM Fine Yarns vs. RPFC, Madurai
ATA No.734(13) 2010 decided on 7.2.2012

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Posted on March 17, 2012, in Important Judgments & rulings. Bookmark the permalink. Leave a comment.

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