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Hi, I have a few doubts regarding the position of employers with respect to supreme court decision. I understand it is just a reiteration with clarity of existing facts in law. But i would like to know the position of employers who have computed PF on basic (which is less than 15k) and now they are required to compute PF after this judgement including allowances.
I understand from March salary they are liable to pay an amount of PF contribution equal to 12% of 15k or salary arrived at after including the allowances
Whether they are liable to pay it retrospectively as arrears to previous months as well.
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Every thing will be legalized after release of official GO
When i was going to earlier discussions i came across a fact that since it is a Supreme Court is a clarification of statue so it does not require any GO. Kindly clarify
Crux and key pointers here are as under -
1. PF ceiling of 15,000/-pm is same ,it has not been revised.
2. If minimum PF contribution as per ceiling is paid i.e 1800/- PM from Both Employee And Employer then there is no need to change.
3. IF contribution is less than 1800 and if Gross is more or up to 15,000/- Rs pm , where Basic is less than 15,000 and remaining amount is bifurcated among different heads then excluding HRA And Statutory Bonus, all other heads to be considered with Basic for framing PF wages up to 15,000/- or on total of all heads if total of all heads is less than 15,000/- then on that entire total amount as arrived to considered as wage for PF to be calculated on.
4. There is no new provision but it is interpretation to the existing section/ Term. Hence date of implication is not expected it is ongoing rule.
5. PF authority have taken recourse to the verdict of SC while conducting the inspections and computation of liability up to wage ceiling as defined under the law
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