Understanding Transportation Charges: Should They Be Part of Salary and Attract PF?

Hi,

I am from HR. My query is, we are paying transportation charges to workers every month. Is this amount included in the salary? Can we deduct PF from this transportation amount? Please clarify.

A fixed sum paid to cover the transportation expenses can be treated as part of the salary for the purpose of computation of PF. At the same time, if the rate of allowance differs depending on the place of residence, way traveled to reach the office and back home, or pay grades which signify different rates for different categories of employees, then it will not be considered for PF deduction.