Understanding PF Qualifying Wages
PF is payable on basic wages and dearness allowance. However, basic wages mean the total wages inclusive of all allowances paid as per the contract of employment. The only exclusion is the house rent allowance. Whatever allowances you pay shall be part of PF qualifying wages if they are paid as per the contract of employment. Even the HRA shall become part of wages if it is not paid as a compensatory allowance. But since the term house rent allowance is specifically excluded, you can exclude it. However, if the allowances make the gross salary exceed Rs 15,000, then you can restrict the contribution to the required percentage of Rs 15,000.