Dear Sheela,
greetings for the day,
Basically Deduction of EPF is done on basic salary+da/vda+food conc.(if any), as far as special allowance is concern it will be treated as undefined allowance, if you go through the payment of wages act. the term like spl. allowance, other allowances are not in the defination of the same. So the Commisionarate of labour, EPF & various other dept. consider those allowances as omitted wages which should be treated at par with basic wages so contribution of EPF on the same will be justified.
Not it was true all the time but during EPF inspection the such allowances will be consider for deduction of epf.
Thanks & regards,
From,
Sumit Kumar Saxena,
9899669071.
greetings for the day,
Basically Deduction of EPF is done on basic salary+da/vda+food conc.(if any), as far as special allowance is concern it will be treated as undefined allowance, if you go through the payment of wages act. the term like spl. allowance, other allowances are not in the defination of the same. So the Commisionarate of labour, EPF & various other dept. consider those allowances as omitted wages which should be treated at par with basic wages so contribution of EPF on the same will be justified.
Not it was true all the time but during EPF inspection the such allowances will be consider for deduction of epf.
Thanks & regards,
From,
Sumit Kumar Saxena,
9899669071.