All above declared by the govt. in the Employees Provident Fund and Miscellaneous Provisions Act, 1952 , called the PF Act
Kindly go thru the attachment for if we deduct the pf only on Basic it is the Part of "Splitting of the Minimum wages" and it is not Permissible. Kindly refer one court case under section 7A.
It was also directed to review all such cases disposed of u/s 7A of the Act where determination of dues has taken place on wages lesser than Minimum Wages.
5th October 2016 From India, Pune
6th October 2016 From India, Bangalore
According to the act, Basic wage+DA+Food concession (i.e.Meals/food/tiff in allowances) + Retaining allowance will be part and parcel of Basic wages on which PF contributions to be deducted either in permanent or contract employees wages.
This is very clear. Besides, it is better to keep the basic wage to at least 50% of total wage as a rationale method, but not below 50%. The other allowances can be at 50%. In such case, no authority will question normally.
7th October 2016 From India, Hyderabad