Hi All,
please enlighten whether a PF officer or the RPFC has an authority to take cognizance of the split in the basic wages stating that the split is designed to avoid the contribution towards PF. An example could be as under:
1. Company has appointed a contractor
2. Contractor has deployed 200 daily labourers @ Rs. 111 as wage per day
3. Salaries are disbursed on a daily basis
4. Contractor has not deducted PF for the past 1 year
5. The company (prinipal employer) is an industry where Minimum Wage rates are not notified by the State Government
6. Principal Employer voluntarily discharged the PF dues on its own cost for the year on behalf of the contract employees
7. The wage considered by the Principal Employer for discharging the PF dues is 60% of Rs. 111 as basic wage and the rest as allowances that are not considered for the purposes of PF
8. RPFC is contesting that the entire wage of Rs. 111 has to be considered for the purposes of PF contribution.
9. There is no express or implied employment contract in place between the contractor and employees and the terms and conditions are that the wage is a consolidated wage @ Rs. 111 per day
Thanks in advance.
Gopichand
