Dear Member,
I would like to clarify the points regarding PF Contribution.
Minimum wages prescribes Basic + DA + Extra Allowance + Special Allowance(In case of certain category of staff)
PF contribution is calculated at 12 % of Basic + DA.
PF authorities insist that Basic + DA + Extra Allowance + Special Allowance have to be taken into account for calculating the PF contribution.
PF act Defines wages as means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include-
(i) the cash value of any food concession;
(ii) any dearness allowance that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living, house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;
(iii) any presents made by the employer;
My question is
Is it mandatory that Extra/Special Allowance to be taken into account for Pf contribution.
Can anyone please brief me on this.
Would greatly appreciate your feedback.
Thank You
Aldrin X.Panakal
I would like to clarify the points regarding PF Contribution.
Minimum wages prescribes Basic + DA + Extra Allowance + Special Allowance(In case of certain category of staff)
PF contribution is calculated at 12 % of Basic + DA.
PF authorities insist that Basic + DA + Extra Allowance + Special Allowance have to be taken into account for calculating the PF contribution.
PF act Defines wages as means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include-
(i) the cash value of any food concession;
(ii) any dearness allowance that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living, house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment;
(iii) any presents made by the employer;
My question is
Is it mandatory that Extra/Special Allowance to be taken into account for Pf contribution.
Can anyone please brief me on this.
Would greatly appreciate your feedback.
Thank You
Aldrin X.Panakal