2. I understand HRA, Bonus & TA in the above breakup need not be included for PF calculations. Please correct me if I am wrong.
Except Basic and DA, no other allowances are required to be deducted for EPF contributions. There are several case laws available to substantiate this point. The same can be shown to epf authorities for reference.
3. Should we include the special allowance i.e Rs. 12179 for calculation of PF along with Basic?
Not required. Unless employee wanted it to include it as voluntary contribution.
4. With the above salary structure are we going against the law? If yes, kindly where we are doing the mistake in calculations.
There is nothing against law in the above structure, as far as your employer also paying their contribution of 13.65% of your basic excluding your 12%
14th June 2016 From India, Chennai
That was indeed a clear reply. I confirm you that ours is CTC and both the contributions are being paid as per the laws.
Secondly, It will be helpful for us if you can refer the case laws you were mentioning or at least show us the way, where to check on net or get in the form of books, it will be of great help.
Thirdly, in the salary structure given earlier by me instead of "Special Allowance", "Flexi Benefit Pay" was used but the amount is the same. Will this update change your response? Please do let us know.
Thanking You once again for the help.
15th June 2016 From India, Hyderabad