We do not have any statutory canteen , it is run and managed by the committee, we are extending only fixed cost to the contractor of the company.
Meal Rate is decided on no profit no loss basis by the committee and based on the worker agreement we are issuing coupon ( as a part of employer share ) and balanced amount is being paid by the workmen but based on the agreement we are also paying canteen allowances ( to meet the expenses of employee share of canteen ) as a part of wages and for other adock allowances is being paid in lie-of tea expenses
Please let us know whether these two components shall be a part and parcel of P.F for computation or not?
It is to be noted that we are paying 80% amount as an wages which attracts the P.F components, and balance 20% as an other allowances incisive of canteen and adock allowances
Regards
R.K.Dixit
From India, New Delhi
1Meal Rate is decided on no profit no loss basis by the committee and based on the worker agreement we are issuing coupon ( as a part of employer share ) and balanced amount is being paid by the workmen but based on the agreement we are also paying canteen allowances ( to meet the expenses of employee share of canteen ) as a part of wages and for other adock allowances is being paid in lie-of tea expenses
Please let us know whether these two components shall be a part and parcel of P.F for computation or not?
It is to be noted that we are paying 80% amount as an wages which attracts the P.F components, and balance 20% as an other allowances incisive of canteen and adock allowances
Regards
R.K.Dixit
From India, New Delhi
There are different verdicts on the same from different courts. In Whirlpool India Ltd Vs Regional PF Commissioner the Delhi High Court had held that canteen allowance which is paid as part of settlement (settlement u/s 12(3) of ID Act) and which is paid to all employees will be part of basic wages attracting PF contribution. The court had referred the definition of basic wages given in the land mark judgement of Supreme Court of India in Bridge & Roof Co. India Ltd Vs Union of India, in which it was stated that allowances which are paid to all employees should be considered as part of basic wages.
However, in another case, NRB Bearings Ltd Vs Asst. provident Fund Commissioner ( 2014 LLR 470), the Bombay High Court has said that tiffin allowance which is paid according to the attendance of employees is not part of basic wages and no PF contribution can be paid on tiffin allowance. Since the nature of payment differ in each case, it should be examined case to case only.
Madhu.T.K
From India, Kannur
However, in another case, NRB Bearings Ltd Vs Asst. provident Fund Commissioner ( 2014 LLR 470), the Bombay High Court has said that tiffin allowance which is paid according to the attendance of employees is not part of basic wages and no PF contribution can be paid on tiffin allowance. Since the nature of payment differ in each case, it should be examined case to case only.
Madhu.T.K
From India, Kannur
Dixit ji, Any food concession / canteen allowance etc. falls within the definition of wages under EPF Act.
From India, Delhi
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Canteen Policy.doc