Dear Ripathjrp,
Answers to you, are as under:
According to Explanation to section 5, average daily wage means the average of the woman's wages payable to her for the days on which she has worked during the period of three calendar months immediately preceding the date from which she absents herself on account of maternity.
"wages" means all remuneration paid or payable in cash to a woman, if the terms of the contract of employment, express or implied, were fulfilled and includes-
(1) such cash allowances (including dearness allowance and house rent allowances) as a woman is for the time being entitled to,
(2) incentive bonus, and
(3) the money value of the concessional supply of food grains and other articles but does not include-
(i) any bonus other than incentive bonus;
(ii) over-time earnings and any deduction or payment made on account of fines;
(iii) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the woman under any law for the time being in force; and
(iv) any gratuity payable on the termination of service;
Salary payable is Gross Salary. According to section 5, payment of maternity benefit at the rate of the average daily wage........ What is average daily rate is as defined in answer to Q1 above.
There is no legal clarity in this respect, according to me.
Various CPFCs during their tenure have given clear instructions that certain category of allowances including Maternity Benefit will not form part of the 'basic wages' as defined under section 2(b) of the EPF Act.
EPFO Chennai says Maternity Benefit is a part of basic wages and included in the term "wages" for the purpose of PF contribution.
I give advise to include Maternity Benefit as a part of "basic wages" for PF contribution. Maternity Benefit is paid for the leave during maternity and therefore it is a kind of paid leave on which PF which PF attracts.