What Is Special Allowance? - Pdf Download - CiteHR
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Raj Kumar Hansdah
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Dear all, Can anyone explain about special allowance?Special allowance is mentioned in my salary break up.Is it compulsory to add special allowance with basic salary , for the calculation of PF.
the residual part of your CTC after adjusting basic, HRA, other tax saving allowances, called spl allowance which is 100% taxable
Dear Pon
Thanks for the perfect explanation !!
Companies hire candidates on a randomly agreed CTC, which is then randomly bifurcated into certain arbitrary components; and then any amount that is left-over is called special allowance.
A corollary to this is:
If the special allowance is enhanced, basic pay gets reduced.
The implication of reduced Basic Pay in statutory benefits and deductions are immense; to the disadvantage of the employee.
This does not happen in companies having a well laid out compensation strategy and process, where any special allowance is meant for a specific purpose.
I hope others are able to appreciate the significance of the above.
Warm regards.

Hi In our company we are payong , basic +hra+cinveyance+medical+special allowance. as recent amendment special allowance also has to be deduct PF. Please suggest wht to do for aviod this
Prakash, Spl. allowances need not be considered for PF deduction. No such amendment is avl. Pon
Dear friends
I think that the latest judgement says the special allowance to be considered for PF deduction.. I am attaching the judgement copy for your reference and records

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File Type: pdf PF_Madhya_Pradesh_HC_considerable_components_of_Basic_wages_of_24_March_2011.pdf (1.71 MB, 606 views)

What are the allowances offered to employee through partnership firm?
I am working in Partnership firm and I have to create pay-slip. PLease help me what kind of allowances I need to add in pay-slip. Our firm is not deduct the PF and ESI deductions, we only do TDS deductions.
So please help me according to new amendments

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