Allahabad high court gave a decision saying that all other allowances excluding overtime and HRA is covered in the definition. However, the Supreme Court is hearing an appeal. And the government has put the implementation on hold.
So you are not required to change your procedure at the moment
21st June 2018 From India, Mumbai
Gujarat, Madhya Pradesh and Madras High Courts have held that all the allowances other than House Rent Allowance will be treated as part of basic wages to attract provident fund contributions. Being aggrieved, some of the employers have filed Special Leave Petition in the Supreme Court vide SLP (C) No.8781-8782/12 under the caption of Surya Roshni Limited. After about 6 years, now the appeals are fixed for final hearing on 03.07.2018. It is pertinent to state here that the Madras High Court in its judgment dated 17.04.2018 in W.P.No.22127 of 2014 titled as M/s.Techset Composition India (P) Ltd., v. The Regional Provident Fund Commissioner-(C&R) has concluded as under:
“The learned counsel for the petitioner states that the 7(A) proceedings had been concluded and a final order has been passed. However, the order so passed need not be implemented till the final disposal of the case pending before the Hon'ble Supreme Court of India cited supra.”
Accordingly, those who are facing such proceedings under sec. 7-A of the Employees Provident Fund and MP Act can take up the plea that till the matters as pending is disposed of by the Supreme Court, no order (when adverse) be implemented.
23rd June 2018 From India