Dear Friends
The question whether PF contribution is payable on all other allowances excluding HRA is pending for hearing before the Hon’ble Apex Court.
In the meantime, the Regional PF Commissioner, Chennai had initiated proceeding under Section 7A of the EPF Act and issued summons to Gammon India Private Limited to determine the contribution payable on all other allowances as the Establishment has been paying various other allowances like, Conveyance Allowance, Special Allowance, Adhoc Allowance, Chilling Allowance, Stipend, LTA, Medical, Dress Reimbursement, Cold Room Shift Allowance, Attendance Incentive and Meals Allowances part from Basic Pay.
The Establishment filed a Writ Petition before the Hon’ble High Court, Madras challenging the proceedings and prayed for a stay of the proceedings.
While disposing the Writ Petition on 3rd May, 2018 the High Court held (Para 13 of the Judgement) that -
It is made clear that the competent authorities are bound to follow the Act and Rules scrupulously, while undertaking the process in such matters. However, in respect of the disputed allowances shall not be demanded or effected till the final disposal of the cases pending before the Hon'ble Supreme Court of India. The final decision in respect of the disputed allowances shall be kept in abeyance till such time.
A copy of the Judement is attached herewith.
Regards
P.S.Lakshmanan
S.G. Management Services
(PAN INDIA Labour Law Compliance Specialist,
PF, ESI P Tax, Benefit Management &
POSH COMPLIANCE)
Kolkata
From India, Kolkata
58The question whether PF contribution is payable on all other allowances excluding HRA is pending for hearing before the Hon’ble Apex Court.
In the meantime, the Regional PF Commissioner, Chennai had initiated proceeding under Section 7A of the EPF Act and issued summons to Gammon India Private Limited to determine the contribution payable on all other allowances as the Establishment has been paying various other allowances like, Conveyance Allowance, Special Allowance, Adhoc Allowance, Chilling Allowance, Stipend, LTA, Medical, Dress Reimbursement, Cold Room Shift Allowance, Attendance Incentive and Meals Allowances part from Basic Pay.
The Establishment filed a Writ Petition before the Hon’ble High Court, Madras challenging the proceedings and prayed for a stay of the proceedings.
While disposing the Writ Petition on 3rd May, 2018 the High Court held (Para 13 of the Judgement) that -
It is made clear that the competent authorities are bound to follow the Act and Rules scrupulously, while undertaking the process in such matters. However, in respect of the disputed allowances shall not be demanded or effected till the final disposal of the cases pending before the Hon'ble Supreme Court of India. The final decision in respect of the disputed allowances shall be kept in abeyance till such time.
A copy of the Judement is attached herewith.
Regards
P.S.Lakshmanan
S.G. Management Services
(PAN INDIA Labour Law Compliance Specialist,
PF, ESI P Tax, Benefit Management &
POSH COMPLIANCE)
Kolkata
From India, Kolkata
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EPF Act.ppt