Dear Team,
I have a query regarding the PF contribution. Should it be deducted from Basic + DA or Basic + DA + Special Allowance for employees earning below ₹15,000?
Kindly help me resolve this issue.
Warm Regards
Kanniyappan
From India, Vellore
I have a query regarding the PF contribution. Should it be deducted from Basic + DA or Basic + DA + Special Allowance for employees earning below ₹15,000?
Kindly help me resolve this issue.
Warm Regards
Kanniyappan
From India, Vellore
Yes, wages on which PF shall be contributed included all fixed allowances or allowances forming part of contract of employment. Therefore, in addition to basic and DA, special allowance and such other allowances, the amount of which are fixed and mentioned in the contract of employment will also qualify for contribution. Any allowances by which the total salary will exceed Rs 15000 shall be omitted for contribution purpose.
From India, Kannur
4227From India, Kannur
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf