Salary Breakdown Dilemma: Should HRA Be Included in EPF Calculations?

Dear Sir,

We have salary components as BASIC (60%), HRA (30%), and CCA (20%). For PF calculation, should HRA be included or not? Could you please provide an explanation?

Thank you.

The PF qualifying salary does not include HRA. All other allowances like CCA in your structure should be part of the PF contributing salary. Though the EPF & MP Act (the principal Act) has not prescribed any limit for the HRA component in the salary for excluding the same from PF contribution, the amendment proposed has put a limit of 20% of the basic salary which can be HRA for exclusion part.