According to the Employees Provident Fund and Miscellaneous Provisions Act, 1952 , called the PF Act, the statute which governs Provident Fund contribution, the PF contribution should be calculated as 12% of “basic wages” (plus DA, cash value of food concession, and retaining allowance, if any), subject to a maximum of Rs 15000/- per month. In case an employee earns basic wages (plus DA, cash value of food concession, and retaining allowance, if any) of more than Rs 15000 per month, they can opt for a higher PF deduction (more than 12% of Rs 15000) at the joint request of the employee and the employer.
All above declared by the govt. in the Employees Provident Fund and Miscellaneous Provisions Act, 1952 , called the PF Act
Kindly go thru the attachment for if we deduct the pf only on Basic it is the Part of "Splitting of the Minimum wages" and it is not Permissible. Kindly refer one court case under section 7A.
It was also directed to review all such cases disposed of u/s 7A of the Act where determination of dues has taken place on wages lesser than Minimum Wages.