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Effects of Supreme Court Judgement in the matter of Surya Roshini Ltd Dated 28-02-2019
Part -2 of 2
Kapish Saluja | Labour Law Consultant | Mumbai
This is part 2 of the article. You can read Part 1 here
https://blog.proactly.in/2019/05/04/pf-deduction-on-gross-salary-supreme-court-decision/
Several charts are being given below, enumerating the various probabilities of the payments made by an employer and the effect of judgment of the Supreme Court on such wage structure, viz-a-viz the existing liabilities towards Provident fund
Assumptions
Assuming that the Minimum Wage for Industry under Minimum Wages Act is : Basic Rs. 7000 . Dearness Allowance Rs. 3000. Total Rs. 10,000
Employers having 50 or more than 50 employees in State of Maharashtra are covered under Maharashtra Minimum House Rent Allowance Act, whereby it has to pay not less than 5% of wages as HRA
Wage Structure A
| Wage Structure | Existing Contributions paid under PF | Contributions payable under PF as per Supreme Court judgment |
| Basic Wage – Rs. 5000 HRA – Rs. 2500 Conveyance – Rs. 2500 CCA – Rs. 1000 Total – Rs. 11000 | Only on Rs. 5000 (Basic) |
On Rs. 8500/- (Basic + Conveyance + CCA) |
Wage Structure B
| Wage Structure | Existing Contributions paid under PF | Contributions payable under PF as per Supreme Court judgment |
| Basic Wage – Rs. 7000 HRA – Rs. 3000 Conveyance – Rs. 3000 Total – Rs. 13000 | Only on Rs. 7000 (Basic) | On Rs. 10000 (Basic + Conveyance ) |
Wage Structure C
| Wage Structure | Existing Contributions paid under PF | Contributions payable under PF as per Supreme Court judgment |
| Basic Wage – Rs. 8000 HRA – Rs. 4000 Conveyance – Rs. 3000 Total – Rs. 15000 |
Only on Rs. 8000 (Basic) |
On Rs. 11000 (Basic + Conveyance ) |
Wage Structure D
| Wage Structure | Existing Contributions paid under PF | Contributions payable under PF as per Supreme Court judgment |
|
Basic Wage – Rs. 10000 HRA – Rs. 5000 Conveyance – Rs. 4000 Total – Rs. 19000 |
Only on Rs. 10000 (Basic) |
On Rs. 14000 (Basic + Conveyance ) |
Wage Structure E
| Wage Structure | Existing Contributions paid under PF | Contributions payable under PF as per Supreme Court judgment |
|
Basic Wage – Rs. 10000 HRA – Rs. 5000 Conveyance – Rs. 3000 CCA – Rs. 3000 Total – Rs. 21000 |
Only on Rs. 10000 (Basic) |
On Rs. 15000 (Basic + Conveyance + CCA) (Since maximum limit is Rs. 15000, it shall be paid on Rs. 15000 and not on Rs. 16000 ) |
Wage Structure F – In case of new entrant who, gives Form 11
| Wage Structure | Existing Contributions paid under PF | Contributions payable under PF as per Supreme Court judgment |
|
Basic Wage – Rs. 10000 HRA – Rs. 5000 Conveyance – Rs. 3000 CCA – Rs. 3000 Total – Rs. 21000 |
– |
No contributions under PF since Basic + Conveyance + CCA exceeds Rs. 15000 |
