EMPLOYER, NOT PF AUTHORITY CAN FIX WAGES FOR CONTRIBUTIONS

The grievance of the appellant in the appeal is that the order dated 25.06.2010 passed by the EPF Authority under section 7A of the Act that - 

the employer is liable to pay contributions under the Act on the wages as fixed under the Minimum Wages Act and not the actual wages paid to the workmen is illegal.
The Appellate Tribunal observed that -
  • the contribution under the Act is to be paid upon the ‘basic wages’ as defined under the Act and not upon the wages fixed under the Minimum Wages Act 
  • Reference - As also held by the Punjab & Haryana High Court in the case of APFC Gurgaon vs. M/s. G4S Security Services (I) Ltd., 2011 
Hence, the impugned order of the EPF Authority is set aside and appeal allowed.
M/s. Black Panther Security Force vs APFC, Nagpur
ATA No.458(9)/2010 decided on 31.1.2012

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