farz23
12

Dear Seniors,
We are paying special allownce as one of our Salary Head.
One of our legal consultant said that the special allowance is applicable for Provident fund deduction. I am quit doubt about this. Can you please guide me for this.
The matter is very important and urgent.
Regards,
Ali

From India, Hyderabad
tsivasankaran
367

Yes Any term Special Allowance or Special Pay will attract PF
I tried to make it as Personal Pay and again there had been problems PF Authorities in Tamilnadu did not press after I changed it to Personal Allowance
Also add in the letter sanctioning Personal Allowance that the same may be withdrawn at any time
Siva

From India, Chennai
tsivasankaran
367

Yes Incentive can be used But you can use Variable Performance Pay and keep modifying it evry year for the individual Siva
From India, Chennai
lalhanumanji
yes Special allowance is subject to deduction for PF which is evidenced by below judgement
The judgment of regional PF commissioner is as under:
“Special allowance being paid to the employees appeared to be the dearness allowance which has been described by a different name; as such the special allowance would be the part of “basic wages”.” (Regional provident fund commissioner V/s Vivekananda vidya mandir, 2005 LLR 399 (Cal)


jp
+91 9998798222


From India, Bangalore
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