Industrial Relations And Labour Laws
Assistant Manager - Hr
Korgaonkar K A
The Madras High Court in R Ramanathan Chettiar Jewellers, Madurai vs. Regional PF Commissioner, Madurai – 1988 (ii) LLJ 045, has pointed out that a payment which is not of a regular nature and is paid purely in the discretion of the management, would not be available for PF contribution. In Associated Cement Company Ltd. and Ors. v. R.M. Gandhi, Regional Provident Fund Commissioner, Gujarat(1995-III-LLJ(Suppl.)-368), it has been held that ad hoc payments made to ‘eligible employees and not to all employees’ under agreement does not form part of basic wages for PF contribution.
Though it is optional for an employee whose salary (PF qualifying salary) at the time of joining the establishment exceeds Rs 6500 to become member, an employee once covered should continue his membership so long as he is in employment. Therefore, if you have given coverage to those whose salary exceeded Rs 6500, you should continue the coverage and you cannot stop it even if the employees give their consent to stop it. Certainly, the employer can restrict his contribution to 12% of Rs 6500 even at a later stage. The employer who has been contributing on the total salary of employee which was higher than Rs 6500 can restrict it to Rs 6500 at a later stage as is decided by the Apex Court in Marathwada Gramin Bank Karmachari Sangahatana and another Vs Management of Marathwada Gramin Bank and others(SC 2011 LLR 1130)
30th October 2012 From India, Kannur
30th October 2012 From India, Madras
The case which you have highlighted is a Madras High Court case. Apparently the query raised by Shri. Milind Kamble seems to be from Mumbai, Maharashtra.
In Maharashtra, special allowance denotes Cost of living allowance i.e. dearness allowance.
It is suggested to change to nomenclature of Special Allowance to some thing else, such as City Compensation Allw., or any other other allowance.
Thanks and regards.
Shantadurgaent.com,Insurance Advisors,Corporate Advisors,Legal Advise,Wage and salary,Shantadurgaent.com,Labour Compliance Audit,SSI registration,NOC from
31st October 2012 From India, Mumbai
I would like to thanks those who have given me their inputs on PF.
Last week we had PF inspection i would like to know after PF inspection closed do we get copy of Pf inspection from PF authority.
We got to know from that Pf inspection acknowledgement copy we will not be getting. They will just show us the copy .
21st November 2012 From India, Mumbai