Basic Salary - What Components Are Forming Part Of Basic As Per PF Act

Dear All,
Does allowances form part of basic wages as defined under sec 2 b of the epf act 1952. What is the practice of the company in case of ctc.

Apart from Basic Salary, Dearness Allowances (variable according to changes in cost of living index or fixed as a percentage of basic pay) and Retaining allowances (allowances paid to employee(s) to retain his skill especially when there is no work due to any reason) are part of salary for the purpose of EPF contribution. If the salary structure does not include any DA but includes something called 'special allowance', the same may also be treated as part of salary for the purpose of EPF contribution. The reason being that special allowances may be interpreted as an allowance to meet changes in cost of living and as such it will have all attributes of DA.
Regards,
Madhu.T.K

Thanks mr. madhu T K,
There is a Judgement of Hon'ble Gujarat High Court, where in it is held that all allowances except hrs and DA forms part of Basic. Yet to see whether it is challanged or not ? reported in 2004.