Pf Act - High Court

whether house rent allowance
will be treated as component of BASIC WAGES for madras high court judgement?

Hi Subbarao,
As per the PF act salary = Basic plus DA plus RA.
HRA is not the par of the salary for calculating contribution for PF

Dear Mr.V.Subbarao,

kindly refer

Following judgment given by Hon’ble Punjab & Haryana High Court on PF Liability for your ready reference;

LLR316 of 2011
Punjab & Haryana High Court, Hon’ble Mr.Mahesh Grover, J.
CWP NO.15443/2009(O&M) D/- 1-2-2011
(Asst. Provident Fund Commissioner V/s. M/s. G4s Security Services (India) Ltd. And Others);

Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 – Sec 2(b),
Basic Wages – Petitioner challenging the order of EPF Tribunal negating the order of Provident Fund Authority holding that minimum wages cannot be split with House Rent, Conveyance and Washing Allowance for attracting EPF Contributions – While Dismissing the writ petition, the High Court observed: The objects and reasons of Employees’ Provident Funds and Miscellaneous Provisions Act and Minimum Wages are manifestly distinct even though they converge on the beneficial aspect of the welfare of an employee – The respondents have rightly excluded certain allowances such as House Rent, Washing and Conveyance Allowances while determining their liability towards the fund – The contention of the petitioner that there us infirmity in the Impugned order recorded by the Appellate tribunal and the petition is held to be without any merit and is dismissed.

dear praveen,
As per PF act, the basic wages is construed for PF contribution as 12%. Here the basic wages incuding Basic plus Dearness Allowances.
Moreover, basic plus DA total should meet the minimum wages of respective region and for the same figure, PF contribution has to be paid by the management as a minimum.
.......... FUI - Now PF authority has recently passed a circular on " Splitting wages below minimum wages to avoid the excess of PF contribution by Management is considered as illegal..
Regards
Boopathi

dear praveen,
As per PF act, the basic wages is construed for PF contribution as 12%. Here the basic wages incuding Basic plus Dearness Allowances.
Moreover, basic plus DA total should meet the minimum wages of respective region and for the same figure, PF contribution has to be paid by the management as a minimum.
.......... FUI - Now PF authority has recently passed a circular on " Splitting wages below minimum wages to avoid the excess of PF contribution by Management is considered as illegal..
Regards
Boopathi