Dear Seniors,
We are paying a special allowance under one of our Salary Head. One of our legal consultants has mentioned that the special allowance is applicable for Provident Fund deduction. I am quite doubtful about this. Can you please guide me on this matter?
This issue is very important and urgent.
Regards, Ali
From India, Hyderabad
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12We are paying a special allowance under one of our Salary Head. One of our legal consultants has mentioned that the special allowance is applicable for Provident Fund deduction. I am quite doubtful about this. Can you please guide me on this matter?
This issue is very important and urgent.
Regards, Ali
From India, Hyderabad
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Yes, any term Special Allowance or Special Pay will attract PF. I tried to change it to Personal Pay, but there were issues. PF Authorities in Tamil Nadu did not pursue it after I modified it to Personal Allowance. Also, include in the letter sanctioning Personal Allowance that the same may be withdrawn at any time.
Siva
From India, Chennai
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Siva
From India, Chennai
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Yes Incentive can be used But you can use Variable Performance Pay and keep modifying it evry year for the individual Siva
From India, Chennai
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From India, Chennai
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Yes, special allowance is subject to deduction for PF, which is evidenced by the judgment below:
The judgment of the regional PF commissioner is as follows: "Special allowance being paid to the employees appeared to be the dearness allowance which has been described by a different name; as such, the special allowance would be part of the 'basic wages'. (Regional Provident Fund Commissioner V/s Vivekananda Vidya Mandir, 2005 LLR 399 (Cal)).
jp
+91 9998798222
jpauditor@ymail.com
lal_hanumanji@yahoo.co.in
From India, Bangalore
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The judgment of the regional PF commissioner is as follows: "Special allowance being paid to the employees appeared to be the dearness allowance which has been described by a different name; as such, the special allowance would be part of the 'basic wages'. (Regional Provident Fund Commissioner V/s Vivekananda Vidya Mandir, 2005 LLR 399 (Cal)).
jp
+91 9998798222
jpauditor@ymail.com
lal_hanumanji@yahoo.co.in
From India, Bangalore
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PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf
PF-Know Employees Provident Fund-CHART-L-4. doc