Pf Contribution On Basic Plus Allowances - PDF Download - CiteHR
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Dear All,
PF office has issued the guidelines about the defination of Basic wages. Now Contribution will be on Basic plus all allwoances.
Be ready to take additional liability as a PF contribution.
Vinod Bidwaik

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Madhu, PFA the circular from EPF..(Ref point no 12) Regards Madhan

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Dear Madhan, Please define, is this have any impact on para 26A of PF scheme. Regards, Pushkar Bisht
Thanks for valuable information.
With Warm Regards,
Faruk Shaikh
Assistant Manager - Human Resource
Span Diagnostics Limited | Plot No. 336-338-340, Road No. 3, GIDC, Sachin - 394 230 Surat, Gujarat, India
Phone: +91-261-239 7712 | Fax: +91-261-239 7719 | Web: Span Diagnostics Ltd. | E mail:

(b) “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either
case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include-
(i) the cash value of any food concession;
(ii) any dearness allowance that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the
cost of living, house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in
respect of his employment or of work done in such employment
But in the notification only Discussion about Commission & any other similar allowance. Means if company are paying House rent allowance, Overtime allowance , it will be not come under PF deduction, If company give any other allowance than it will be come unde PF deduction.
Am I right ? Please reply

Good evening,, pls find attach epf on different allounce

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even though te circular intends to include various allowances within the definition of basic wages under Sec.2(b), the contributions will be computed on the wage limit of Rs.6500/-p.m only and hence, it may have no sweeping effect from the employer point of view.Howver,HRA,O.T,commission and bonus will stand excluded.
HR & labour Law advisor

Dear All,
There is a proposal to increase the ceiling amount from Rs.6500/- to Rs.10,000/- and with a minimum pension of Rs.1,000/-. However the latest circular does not talk about the increase in ceiling amount, means that if the basic amount is more than Rs.6500/- then the latest circular does not have any impact. If the basic amount is less than Rs.6500/- then the allowances as noted in the latest circular will be considered upto a ceiling of Rs.6500/- only to arrive at the PF amount.
V. Padmanabha
HR Manager

Thank you for sharing EPF Circular, can anyone tell it is effective from which date (approx)? as per the circular, there is an enquiry report to be submitted by RPFC for consideration of the Compliance Officers.
dear pushkar,
the consideration of Basic Wages shall be have clubbed of all allowances which are being paid on monthly basis but if not exceeding the ceiling limit i.e. 6500.- means the ceiling is still the same?i.e. 780/- on 6500/-.
in addition ,
please write if this is applicable on all types of industries and companies.
Thanks and Regards,
Shubha Gupta
HR Manager.
Robosoft Solutions

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