Asso.prof.(commerce & Management)
Hr Manager

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Hello Everyone,
As we all are aware that SC has amended a New Guideline that EPF Deductions will be done on Gross Salary excepted HRA.
In this regards I would like to know which other Salary Heads are exempted from EPF Deductions.
So that I can prepare Salary Structure accordingly.
Hoping for your favorable responses.

From India, Ahmedabad
Hi Jackson,
First of all you have to be thorough with the definition of (salary) wages as per the EPF act which reads as under (this has been repeated in the SC judgment as well) -
Definition of wages -
As per the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him. However, the Act excludes these two important emoluments following from the definition of Basic Wages or Salary:
(i) the cash value of any food concession;
(ii) any dearness allowance that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living, house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment.
The attached info will help you in deciding the next course of action.

From India, Bangalore

Attached Files
File Type: docx Splitting of Minimum Wages for the purpose of PF contribution not permissible.docx (20.4 KB, 109 views)

in school, we are appointed contractor for scavengers, Gardening and house keeping labour, what is wages structure, and it there Factories under Fy. Act. (Residury). Pl explain me sir Ashok
From India, Pune
Thank You Mr. Kumar for your guidance and attachment. It is very valuable. Thank You once again
From India, Ahmedabad
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