Epf Deduction On Special Allowances - PDF Download

Dear Madhu Sir
I always love to read your comments, I also concurr with you view with few doubt which you may appriciate. It is only the EPF chennai which on its officail web site posted that speacial aloowances will atacts PF contribution. Now it is not an notification but mere orbiter dicta of few judgements on the basis of facts of particular case. However its really consfusing can we ask the PF regarding clerify all this under RTI act which will clerify our doubts.
The link is below
http://www.epfochennai.tn.nic.in/pdf/RO_basicwages.pdf
Regards
Anirban
9768278408

I believe that I have made it clear that special allowance paid to all employees in general should be treated as part of salary with the presumption that it is shown separately just to reduce the basic salary amount. PF is excluded from that special allowances which are paid only to some special category of employees. Moreover, with regard to employees who are paid minimum rates of wages or to whom the PF qualifying salary (Rs 6500) or less than that are paid, the cited cases (epfo chennai website in reference) could have relevance. For others there is no significance as by including special allowance the salary may exceed the qualifying salary of Rs 6500. Therefore, when special allowance forms part of statutory salary, it will attract PF contribution but when it is paid to certain category of employees only to defray a special expense, then it is outside the purview of PF
Regards,
Madhu.T.K

'Special Allowance' is a debatable issue. As of now there are plenty litigations pending before the EPF Tribunal and various High Courts and even the Apex Court on this point alone. And many of these cases have a stay order granted as on date. Has anybody got new updates please let us know.

I would like to request that wherever mention of Rs 6500 is made please read it as Rs 15000 because by now the PF qualifying salary has become Rs 15000.
Madhu.T.K