Our company is based in Mumbai. We do not have Dearness Allowance in our compensation structure, but we have Special Allowance salary components. Are Dearness Allowance and Special Allowance the same for Maharashtra state? Do we need to calculate PF and Gratuity based on the percentage of Basic salary or Basic+Special Allowance percentage?
From India, Pune
Acknowledge(0)
Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
Special allowance is not dearness allowance. If your company doesnt have dearness allowance as a component, then you need to calculate PF only on Basic wages.
From India, Chennai
Acknowledge(0)Amend(0)
151From India, Chennai
Acknowledge(0)Amend(0)
If you see the minimum wages notification for Maharashtra, you will notice that the state government is providing basic and special allowances as components of wages. Therefore, it is possible that the labor officer and the courts would consider it as a part of DA.
One safe way to handle this would be to meet the Public Relations Officer (PRO) of the Provident Fund (PF) department and obtain a written clarification. However, it is likely that the department will advise you to pay it based on the entire wage.
From India, Mumbai
Acknowledge(1)
Amend(0)
One safe way to handle this would be to meet the Public Relations Officer (PRO) of the Provident Fund (PF) department and obtain a written clarification. However, it is likely that the department will advise you to pay it based on the entire wage.
From India, Mumbai
Acknowledge(1)Amend(0)
In Maharashtra, DA is called the Special Allowance under minimum wages act. Special Allowance is revised in Jan & July.
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
Dear Friend , I am also with Kprasson .For all purpose we include Basic & Spl Allow than why not ,as it termed different ways,as it is link with current situation in Market . Regards
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Hello all,
If special allowance is equivalent to DA in Maharashtra, then the PF contribution will be Basic + special allowance. So, in this case, do we have to pay the revised PF contribution from the DOJ (backdated) or can we start from this month onwards? Please clarify.
Regards,
Sumita Mehta
From India, New Delhi
Acknowledge(0)Amend(0)
If special allowance is equivalent to DA in Maharashtra, then the PF contribution will be Basic + special allowance. So, in this case, do we have to pay the revised PF contribution from the DOJ (backdated) or can we start from this month onwards? Please clarify.
Regards,
Sumita Mehta
From India, New Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
PF Notification on special allowance.pdf