Are Attendance Bonuses Subject to PF Deductions? Seeking Clarity on New Rules in Chennai

PF Deductions for Attendance Bonuses

In Ambattur, Chennai, the PF officials are sending notices to companies stating that they have to deduct the PF amount for Attendance Bonuses. They say that as per the new PF act, except for HRA, all other payments, including incentives (such as attendance bonuses), should be considered earnings. Please explain if this is correct and then post the relevant PF act amendment.

Regards,
Subiah. G
Chennai - 62

They may have sent notices based on the recent judgment from the Chennai High Court. However, this is currently under a stay order as per the court's instructions. Please refer to the following files.

Regards,
S. Sethupathy
Excellent HR Services,
Erode

When we show this stay order to the enforcement officer in Ambattur, he says this stay is applicable to the particular company that raised the issue. If you need a stay order for your company, you can obtain one from the court. Legal experts, please provide your comments.