Supreme Court Judgement on Special and Other Allowances
7th March 2019 From India, Kolkata

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File Type: pdf Supreme Court Judgement on Special Allowance and others - A Summary.pdf (34.7 KB, 924 views)

In view of this judgement there are a lot of apprehensions raised by employers and employees abiut their liability and the take home salary. I have put my views about the judgement as interpreted by me. Please follow the link.
Madhu T K
7th March 2019 From India, Kannur
After Supreme court judgement, now how we can bifurcation employee Salary structure as per rules.
Please guide me.
9th March 2019 From India, Nagpur
Dear Mr. Madhu, Went through your blog. Good Read. One more point is that in case of employers" who mention the Employers contribution in their CTC structure, if the employers now decide to restrict the employers' contribution to Rs.15000 wages i.e to Rs.1800 per month, then the employees CTC will go down. Hence they would need to compensate the reduction in some other component, which again would attract PFcontribution. There is a limit to how much an employer can increase the HRA as there are % restrictions according to the HRA Act.
We still need a clarity as to when we need to start implementing the change as per the Supreme Court ruling.
12th March 2019 From India, Mumbai
In the case of employees whose F contributing salary is already Rs 15000, any addition to special allowance will not make any difference. For example, Your total Salary is Rs 150,000 and your Basic pay on which PF is deducted is Rs 50000. That means Rs 6000 is your employer's contribution included in the CTC, ie, Rs 156000 per month. Now if the employer reduces it to 12% of 15000, then the share will be Rs 1800.Since the CTC of Rs 156000 is already agreed with you, the difference of Rs 4200 will be paid to you by the employer and this can be paid to you under any head because this will not attract PF because the PF is contributed on Rs 15000.
Now it is not necessary that the employer can only contribute on Rs 15000, he can contribute it on any amount and for that there is no limit, in fact.
12th March 2019 From India, Kannur
Good read...
I have a query that if an employee's gross is 19000 per month and the salary break up is as given below:
Basic - 10000
HRA - 3000 (30% of Basic)
All Allowances - 6000
How we can restructure or deposit the PF contribution for the above case in current scenario..
Ramandeep Singh
12th March 2019 From India, Pune
Thank you Mr. Madhu. Could you confirm whether it is advisable to start implementing the change or we should still wait for the implementation ?
13th March 2019 From India, Mumbai
On a salary of rs 19000, you will have to pay PF at least on Rs 15000. That is gross salary less HRA subject to a maximum of Rs 15000.
You can start paying contributions now, no need to wait for any further notification to come.
14th March 2019 From India, Kannur
Is it mandatory to pay on Rs 15k, if basic is 70% of total package and balance are in allowances like if someone is getting 2ok , out of this 14 k is basic and balance only 6k is in allowances
25th March 2019 From India, New Delhi
Thank You. Mr.Madhu. I was inquiring with some PF Inspectors about the internal guidelines given to them . They said that there is no guideline yet from the Central Board of Trustees as they are expecting a formal Notification to come in .Regards
25th March 2019 From India, Mumbai
Dear MT52,
The EPFO has already issued a circular in this respect. Pl.see the same attached.
26th March 2019 From India, Bangalore

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File Type: pdf EPFO's CIR. DATED 14.03.2019 to follow SC judgment.pdf (221.1 KB, 414 views)

This is a circular issued to the Regional Offices directing the Asst PF commissioners dispose of the cases pending under section 7A of the Act and to initiate and strengthen the activities of the field Enforcement Officers to find out who all are paying PF without considering the actual meaning of the basic wages. Now in respect of establishments against whom action to determine omission has been initiated will be issued final order to pay the difference. Again there will be notices u/s 14B and 7Q for recovery of damages and interest. In respect of other establishments against whom so far no action has been initiated, notice u/s 7A will be served and assessment of PF dues on the omitted part of wages will be done. If you wait till such notice comes, you will have to pay more interest and damages and if you start calculating the PF dues on the basis of the interpretation of law by the Supreme Court you can avoid payment of interests and damages.
26th March 2019 From India, Kannur
Dear Sir,
If Basic + Allowances = 18000 then in how much amount we deduct PF . on 15000 Rs. or on 18000 Rs. please confirm us.
4th May 2019 From India, Ahmedabad
You can deduct PF on Rs 15000 though it is certainly open to the employer or employee to decide on the PF qualifying salary when it exceeds Rs 15000.
4th May 2019 From India, Kannur
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