Dear Yamini.D,
Please find attached herewith a circular of EPFO : HO, New Delhi dated 06.08.2014 which is self explanatory to your query.
By this circular, the officers of EPFO were directed to inspect the establishments which are splitting the wages wherein the basic component is kept at 50% or more to the gross pay.
According to EPFO many employers often split wages in various allowances to reduce their PF liability.
The intention of EPFO to give directives to inspect the establishments was to understand the gravity and decide in to nitty-gritty clubbing of allowances with basic as suggested by review committee.