Supreme Court's PF Ruling: Are Food Allowances Now Included in Your State?

Dear all,

Recently, the Supreme Court issued a judgment regarding the contribution clause of PF, which includes all allowances except HRA in the gross amount. However, we have not yet received any gazette notice from the concerned department in our region. Are there any proceedings related to this issue in other states? Moreover, I would like to clarify whether food allowance will attract PF contributions.

Thank you.

So far, no notification to that effect has been issued to include such allowances other than Dearness Allowance to be included in the salary for the purpose of EPF. Therefore, the food allowance will not attract PF as of the current date.

Regards,
Madhu.T.K

Dear Raam,

So far, the EPF Act states that only the basic salary and dearness allowance are considered when calculating PF. Food allowance is not included under the EPF Act. However, for the ESIC Act, food allowance is taken into account when calculating ESI contributions.

Cheers,
Trisha
HR Professional