Understanding Retaining Allowance in PF: Can Someone Explain What It Really Means?

Raj Rajeswar Senapati
Can anybody explain to me what the Retaining Allowance is all about in PF?
Madhu.T.K
Any allowance that is paid to an employee by the employer to retain the resource is a retaining allowance. This is generally an allowance paid to executives during the time when there are no operations, but an amount is paid to retain them in the company. However, it should not be interpreted on par with layoff wages. A special amount paid to a person of exceptional skill is also considered a retaining allowance.

Regards,
Madhu.T.K
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