Dear seniors, Pl let us know impact of new judgement given by honourable supreme court in respect of pf contribution whether it is to be computed on basic or basic and other allowances....
From India, Mumbai
8From India, Mumbai
Refer SC Judgement of Date 28-02-19 in Civil Appeal 3967-3968 of 2013.
Court has derived that
'the allowances in question being paid to its employees were either variable or were linked to any incentive for production resulting in greater output by an employee and that the allowances in question were not paid across the board to all employees in a particular category or were being paid especially to those who avail the opportunity. In order that the amount goes beyond the basic wages, it has to be shown that the workman concerned had become eligible to get this extra amount beyond the normal work which he was otherwise required to put in.'
It was also observed by the Authority as under.
' a factual conclusion that the allowances in question were essentially a part of the basic wage camouflaged as part of an allowance so as to avoid deduction and contribution accordingly to the provident fund account of the employees'
So Hon. Supreme Court has dismissed Appeals.
Judgement ia attached herewith for ready reference.
This judgment has wide impact on the definition of wages under EPF Act. This may affect the definition of wages in all labour legislations where Basic and DA Constitues Wages. eg ESI, Gratuity etc.
V.K.SHAH
Retired Deputy Commissioner of Labour, Gujarat.
Advocate, Labour Laws Advisor and Trainer.
9825866102
[email] dcl.vkshah@gmail.com
[url=http://www.vkshahassociates.com/] VKSHAHAssociates, Labour Laws Advisor, Consultant, Advocate & Trainer
From India, Ahmadabad
Court has derived that
'the allowances in question being paid to its employees were either variable or were linked to any incentive for production resulting in greater output by an employee and that the allowances in question were not paid across the board to all employees in a particular category or were being paid especially to those who avail the opportunity. In order that the amount goes beyond the basic wages, it has to be shown that the workman concerned had become eligible to get this extra amount beyond the normal work which he was otherwise required to put in.'
It was also observed by the Authority as under.
' a factual conclusion that the allowances in question were essentially a part of the basic wage camouflaged as part of an allowance so as to avoid deduction and contribution accordingly to the provident fund account of the employees'
So Hon. Supreme Court has dismissed Appeals.
Judgement ia attached herewith for ready reference.
This judgment has wide impact on the definition of wages under EPF Act. This may affect the definition of wages in all labour legislations where Basic and DA Constitues Wages. eg ESI, Gratuity etc.
V.K.SHAH
Retired Deputy Commissioner of Labour, Gujarat.
Advocate, Labour Laws Advisor and Trainer.
9825866102
[email] dcl.vkshah@gmail.com
[url=http://www.vkshahassociates.com/] VKSHAHAssociates, Labour Laws Advisor, Consultant, Advocate & Trainer
From India, Ahmadabad
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