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Sridharan Iyengar (Labour Law consultant)     16 November 2008

Qualifying Wages for PF

Sirs,

I client runs a business. He is a Labour contractor. He has been doing a piece rated jobs in a manufacturing industry. He supplies manpower  to the principle Employer to do certain processess on piece rate or tonage basis. Not on time rated.

His income is based on the work complition in the Principle employers place and he earns say X rupees.

One of the PF enforcement authorities insist my client to qualify atleast 60% of the bill amount for PF deduction

But the fact is that my client pays the applicable minium wages to all the employees working under him and he pays PF contribution for the entire wages ( If the daily rate is Rs.130/- he consider the qualifying wages for PF, the entire 130/- rupees)

Should the PF authority concerned with the wages  paid to the employees or the bill amount that the contractor claims from the Principle employer.

Please clarify me

 



Learning

 2 Replies

Manish Singh (Advocate)     17 November 2008

PF IS enforceable only to the wages including house rent alowance, dearness allowance and food concession if any and it cant be enforced on he eranings of the Contractor/ agent.

Sridharan Iyengar (Labour Law consultant)     20 November 2008

Thanks for the opinion.


If Iam able to get some reference like ,  rule / section of the particular enactment, it would be more helpful.


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