I am sorry to state that you are wrong in stating that HRA is included for the calculation of PF. Please find below the excerpt from the judgment:
Bridge & Roof (supra)
"The aforesaid provisions fell for detailed consideration by this Court when it was observed as follows:
7. The main question, therefore, that falls for decision is as to which of these two rival contentions is in consonance with s. 2(b). There is no doubt that "basic wages," as defined therein, means all emoluments which are earned by an employee while on duty or on leave with wages in accordance with the terms of the contract of employment and which are paid or payable in cash. If there were no exceptions to this definition, there would have been no difficulty in holding that production bonus, whatever its nature, would be included within these terms. The difficulty, however, arises because the definition also provides that certain things will not be included in the term "basic wages," and these are contained in three clauses. The first clause mentions the cash value of any food concession, while the third clause mentions presents made by the employer. The fact that the exceptions contain even presents made by the employer shows that though the definition mentions all emoluments which are earned in accordance with the terms of the contract of employment, care was taken to exclude presents which would ordinarily not be earned in accordance with the terms of the contract of employment. Similarly, though the definition includes "all emoluments" which are paid or payable in cash, the exception excludes the cash value of any food concession, which in any case was not payable in cash. The exceptions, therefore, do not seem to follow any logical pattern which would be in consonance with the main definition.
8. Then we come to clause (ii). It excludes dearness allowance, house rent allowance, overtime allowance, bonus, commission, or any other similar allowance payable to the employee in respect of his employment or of work done in such employment. This exception suggests that even though the main part of the definition includes all emoluments which are earned in accordance with the terms of the contract of employment, certain payments which are, in fact, the price of labor and earned in accordance with the terms of the contract of employment are excluded from the main part of the definition of "basic wages." It is undeniable that the exceptions contained in clause (ii) refer to payments which are earned by an employee in accordance with the terms of his contract of employment. It was admitted by counsel on both sides before us that it was difficult to find any one basis for the exceptions contained in the three clauses. It is clear, however, from clause (ii) that from the definition of the word "basic wages," certain earnings were excluded, though they must be earned by employees in accordance with the terms of the contract of employment. Having excluded "dearness allowance" from the definition of "basic wages," s. 6 then provides for the inclusion of dearness allowance for purposes of contribution. But that is clearly the result of the specific provision in s. 6 which lays down that contribution shall be 6 1/4 percent of the basic wages, dearness allowance, and retaining allowance (if any). We must therefore try to discover some basis for the exclusion in clause (ii) as also the inclusion of dearness allowance and retaining allowance (for any) in s. 6. It seems that the basis of inclusion in s. 6 and exclusion in clause (ii) is that whatever is payable in all concerns and is earned by all permanent employees is included for the purpose of contribution under s. 6, but whatever is not payable by all concerns or may not be earned by all employees of a concern is excluded for the purpose of contribution. Dearness allowance, for example, is payable in all concerns either as an addition to basic wages or as a part of consolidated wages where a concern does not have separate dearness allowance and basic wages. Similarly, retaining allowance is payable to all permanent employees in all seasonal factories like sugar factories and is therefore included in s. 6; but house rent allowance is not paid in many concerns and sometimes in the same concern it is paid to some employees but not to others, for the theory is that house rent is included in the payment of basic wages plus dearness allowance or consolidated wages. Therefore, house rent allowance, which may not be payable to all employees of a concern and which is certainly not paid by all concerns, is taken out of the definition of "basic wages," even though the basis of payment of house rent allowance where it is paid is the contract of employment. Similarly, overtime allowance, though it is generally in force in all concerns, is not earned by all employees of a concern. It is also earned in accordance with the terms of the contract of employment; but because it may not be earned by all employees of a concern, it is excluded from "basic wages." Similarly, commission or any other similar allowance is excluded from the definition of "basic wages" for commission and other allowances are not necessarily to be found in all concerns; nor are they necessarily earned by all employees of the same concern, though where they exist they are earned in accordance with the terms of the contract of employment. It seems, therefore, that the basis for the exclusion in clause (ii) of the exceptions in s. 2(b) is that all that is not earned in all concerns or by all employees of a concern is excluded from basic wages. To this, the exclusion of dearness allowance in clause (ii) is an exception. But that exception has been corrected by including dearness allowance in s. 6 for the purpose of contribution. Dearness allowance, which is an exception in the definition of "basic wages," is included for the purpose of contribution by s. 6, and the real exceptions, therefore, in clause (ii) are the other exceptions beside dearness allowance, which has been included through s. 6."
It is clearly evident that the SC has used its earlier decision to exclude HRA for calculation of PF as it is not an allowance that is uniformly paid across organizations to everybody.