Revised definition of PF wages - includes (Basic+VDA+HRA+Travel Allowance+Canteen Allowance+Lunch Incentive+ SPL All+Mgt Allowance) - CiteHR


Dear All, As per judgement of various cases it seen that PF wages definition includes (Basic+VDA+HRA+Travel Allowance+Canteen Allowance+Lunch Incentive+ SPL All+Mgt Allowance) should we follow this definition on basis of Judgement only or some notification also issued by RPFC
For your reference judgement copy attached.

From India

Attached Files (Download Requires Membership)
File Type: pdf 2232_2008_Judgement_28-Feb-2019.pdf (393.3 KB, 64 views)

There is no revised definition of wages given by any court other than a clarification by the Apex court. The definition of basic wages remains the same. As per EPF & MP Act, the basic wages means the total wages earned by an employee while on duty or on leave. The contribution is payable on this basic wages plus dearness allowances. There is no change in it. Many employers have misinterpreted the basic salary as the basic salary that they fix by bifurcating the salary agreed to the employee. The Courts have only rejected this system and clarified that it is the total wages that would qualify for PF contribution. Therefore, if you want to be legally compliant, you should deduct the PF on the total salary.
If the total salary exceeds Rs 15000, you can restrict the contribution to the required percentage on Rs 15000.

From India, Kannur

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