My personal observations of the issue are as follows:-
1. The origin of the case was from the definition of Basic wages as per the present PF & Misc. Act. All the organizations all over India was paying contribution of PF on Basic & DA only though in the definition of Basic wages it is mentioned that it includes all remuneration with exclusion of HRA, DA etc. As per Sec -6 of the PF act contribution to be paid on Basic, DA & RA.
2. As per Apex court Verdict all organizations have been paying contribution on (Monthly gross - HRA).
3. To my opinion as the Apex court has not been rejected or amended the definition of Basic Wages, therefore, as per exclusion list of the definition, HRA is not being considered.
4. Moreover, in the new labor codes PF contribution will be on wages ( Basic & DA ) only.
5. I hope all the Indian organizations will pay PF contribution and Gratuity payment on Basic & DA only even after implementation of labor codes also.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
[Login to view]
USD HR Solutions – To Strive towards excellence with effort and integrity