Section 124 cannot be read as a complete bar on wage restructuring. It only prohibits the reduction of wages or total benefits by reason only of the employer's liability to pay contributions. As far as the provident fund is concerned, statutory contribution cannot be reduced or avoided. Wages...
Labour Law
This statement of the Government supports this interpretation. Further, an illustration was circulated by the Ministry of Labour and Employment on 10.12.2025 wherein it had included the excluded components under the ambit of "total remuneration".
