PF is calculated on Basic plus DA & retaining allowance, if any.
You are liable to pay Basic & DA at least the rate as prescribed under Minimum wages. Therefore, PF deduction is attracted on Basic plus DA or the minimum wage amount whichever is higher.
This is applicable all over India. In Maharashtra, special allowance denotes as DA.
This is a big confusion with PF contribution in Maharashtra State, the current minimum wages is Basic 5800 and Special Allowance-2511=8311.00 The PF deduction will be made from 8311.00 or 5800.00. In our salary breakup if Basic is 10000 and Special Allowance is 6000, then still the PF will be deducted from 10,000 OR 16000. Technically it would be 16000, but still can we deduct the PF from Basic-10000. We have shown the special allowance separate and not incorporated in calculating the PF.
Greetings for the day,
Agreed with Mr. Keshav , but EPF authorities are also in confusing state what to do what not to do go with the enclosed circular you will also get confused.We all know that minimum wages is the component of basic+da but circular conflict the same address.
Thanks & Regards,
Sumit Kumar Saxena