I am a Consultant at one company. We have sent that company a PF notification stating that the new wage ceiling for PF is Rs. 15,000 from September 2014. However, they told me that the term "Basic" is not used in that notification, so PF is not applied to the Gross salary of Rs. 15,000 even though the basic is Rs. 8,000. Does anyone have a solution regarding this matter?
From India, Ahmedabad
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1From India, Ahmedabad
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Definition of wages in PF
The definition of wages in PF includes basic and DA, while other components are not included. This is currently being debated in the Supreme Court, which is a separate matter.
Since the definition specifies basic and DA, the revised wage limit will also automatically apply to basic and DA. Employees cannot make their own interpretations. If needed, you can write to the Commissioner of PF to get a clarification. However, the revised law clearly states that the revision in the limit applies only to basic and DA.
From India, Mumbai
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The definition of wages in PF includes basic and DA, while other components are not included. This is currently being debated in the Supreme Court, which is a separate matter.
Since the definition specifies basic and DA, the revised wage limit will also automatically apply to basic and DA. Employees cannot make their own interpretations. If needed, you can write to the Commissioner of PF to get a clarification. However, the revised law clearly states that the revision in the limit applies only to basic and DA.
From India, Mumbai
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PF Notification for enhancement of wage ceiling & Pension wef 1-Sep-14.pdf