No doubt the PF contribution has to be paid on "Basic Wages , Dearness Allowance, Value of any Food Concession and on retaining allowance if any as per Section 6 of the EPF & MP ACT, 1952. But under Section 2 (b) of the Act the "basic wages " were defined as all emoluments which are earned by an employee while on duty or on leave but does not include house rent allowance, overtime allowance , bonus, commission or any other similar allowance only. By showing this definition of Basic Wages the PF Inspectors in some areas are insisting payment contributions on Conveyance Allowance, Washing Allowance, Special Allowance and Shift allowance also. At this juncture it is putting the employers in embarassment position and they were compelled to manage the authorities. Hence it required clear cut clarification from the PF Department. Can any one give their opinion on this contradictory definitions ?
with regards
sanagapalli