Dear All,
Though the definition of "Basic Wages" under PF Act is
(b) "basic wages" means all emoluments which are earned by an employee while on duty or 6*[ on leave or on holidays with wages in either case] in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include--
(i) the cash value of any food concession;
(ii) any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of
living), house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his
employment or of work done in such employment;
(iii) any presents made by the employer;
My question is Company has provided canteen facility & subsidised for Rs. for 32 per day per employee. Can payment of canteen subsidy extended by Employer is under Preview of Basic Wages.
Regards,
Rahul
From India, Mumbai
Though the definition of "Basic Wages" under PF Act is
(b) "basic wages" means all emoluments which are earned by an employee while on duty or 6*[ on leave or on holidays with wages in either case] in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include--
(i) the cash value of any food concession;
(ii) any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of
living), house-rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his
employment or of work done in such employment;
(iii) any presents made by the employer;
My question is Company has provided canteen facility & subsidised for Rs. for 32 per day per employee. Can payment of canteen subsidy extended by Employer is under Preview of Basic Wages.
Regards,
Rahul
From India, Mumbai
Yes. As per the Law, it can be assessed as part of the Basic Pay. Please note that Canteen Subsidy is taxable as per law.
From India, Delhi
1From India, Delhi
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