Understanding PF Contributions: Should Conveyance and Special Allowances Be Included?

Judgment on PF Contributions

I came across the attached communication and judgment on PF. The judgment states that if conveyance allowance and special allowance are given uniformly to all employees, then the same has to be considered when calculating PF contributions.

For your information and interpretation...

Regards

Dear Sir, In our company, we have 18 Korean employees and 350 others. We are not deducting the Korean employees' EPF. Is it mandatory to do so or not? Kindly send the G.O.

Regards, Amit Narain Changwoon E&C India Pvt. Ltd. Mumbai [Phone Number Removed For Privacy Reasons]

If a Korean employee is receiving a salary in India and the payroll is being generated here, i.e., showing the employee in India, then PF must be deducted. However, in the case where these employees are part of a unit outside India and their payroll is managed outside the Indian unit, it is not mandatory.

Furthermore, if appointed as a consultant, you can also be exempt from PF deductions.

What are the permissible components of minimum wages under the law? If rates for daily wages are as below for Delhi, could we divide minimum wages into a salary breakup?

Per-Month DA Per-Day
Unskilled 156 9724 374
Semi-skilled 182 10764 414
Skilled 208 11830 455