RAVI RAKESH
Compliances Of Labour Laws

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
I want to know what is impact of new Code on Wages on Employees Provident Fund Scheme?
From India, undefined
In code of wages there is definition of wage and in the recent published of proposed amendment of EPF Act the definition of wage instead of Basic wage is the same. As per the new definition, wages includes Basic, DA and Retention allowance if any and excluded many items including HRA. There is a proviso where it is mentioned that if the other allowances are more than 50% of wage, the extra amount above 50% (or any other % as will be declared by the appropriate govt. ) will add back as wage.
Therefore, PF Wage instead of Basic will be 67% of monthly gross ( 2/3 rd ) and 33% other allowances ( 1/3 rd). There is every possibility in future the definition of wage will same in all labour laws and Gratuity may be required to pay on higher wage.
S K Bandyopadhyay (WB, HOWRAH)
+91 98310 81531

From India, New Delhi

Attached Files
File Type: pdf Amendments to RPF Act-Proposed (1).pdf (863.3 KB, 83 views)

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™