Supreme Court Judgement on Special and Other Allowances

Dear MT52,
The EPFO has already issued a circular in this respect. Pl.see the same attached.

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.

Dear Sir,
If Basic + Allowances = 18000 then in how much amount we deduct PF . on 15000 Rs. or on 18000 Rs. please confirm us.

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.