Maharashtra PF Deductions: Does Special Allowance Count Too? Can Anyone Share Updates?

Hi friends,

If anybody has a notification or amendment in Maharashtra to deduct PF from Special Allowance as well, please help me by sending a copy of it.

Madan

To the best of my knowledge and awareness, there is no provident fund (PF) on Special Allowance. Therefore, there is no question of a circular at all!

Dear,

As per the latest judgment of the PF Tribunal, special allowance should not be considered as part of wages for PF deduction. Please see the attachment for more details.

Thank you.

Mr. J.S. Mallik, thank you for your opinion. Please note that this is the wrong interpretation. Dearness allowance is termed special allowance in Maharashtra and hence is subject to PF deduction.

Dear Sir, will you be able to provide any government document regarding DA being termed as Special Allowance? As my PF inspection is ongoing, the PF Inspector is also requesting to deduct PF on Special Allowance.

Clarification on Allowance Interpretation

Mr. J.S. Mallik, thank you for your opinion. Please note that this is a wrong interpretation. Dearness Allowance is termed Special Allowance in Maharashtra and hence is subject to PF deduction.

Thank you.

I thank Malik ji for sharing the judgment, but I support the view of Akarshan ji. In my view, the judgment delivered by any High Court is not binding if you are not falling under its jurisdiction. Also, one has to read the judgment fully and infer it in the present circumstances to determine its applicability.

In Maharashtra, the special allowance denotes the Cost of Living Allowance, i.e., dearness allowance, and therefore, provident fund (PF) is applicable on the special allowance in Maharashtra.

Regards,