Dear Sirs/ Mams Is the PF Contribution includes basic + DA+ allowances ?. Or it excludes allowances. Any judicial clarifications available ?
From India, Kottayam
1From India, Kottayam
dear all
as ot is very correct that there will be no PF deduction on Leave encashment
but when it is been service benefit for an employee such as in case of resignation and terninattion and retirement ... but about , when any body encahed his/her leave while he/she is in service
.
From India, Chandigarh
as ot is very correct that there will be no PF deduction on Leave encashment
but when it is been service benefit for an employee such as in case of resignation and terninattion and retirement ... but about , when any body encahed his/her leave while he/she is in service
.
From India, Chandigarh
Hi,
PF contribution includes basic + DA + allowances.As per Sec 2b of PF act, Basic wages inlcludes all emoluments except HRA, D.A & cash value of food concession.Therefore, Special allowance is includd in the definition of basic wages.As per Sec 6 of PF act, PF should be contributed on Basic + D.A where D.A also includes cash value of food concession.
So, Special allowance is included in basic wages and therefore PF should be contributed on that.
Hope it was helpful for you.
From India, Chennai
PF contribution includes basic + DA + allowances.As per Sec 2b of PF act, Basic wages inlcludes all emoluments except HRA, D.A & cash value of food concession.Therefore, Special allowance is includd in the definition of basic wages.As per Sec 6 of PF act, PF should be contributed on Basic + D.A where D.A also includes cash value of food concession.
So, Special allowance is included in basic wages and therefore PF should be contributed on that.
Hope it was helpful for you.
From India, Chennai
Dear Baskaran
Please Read the Section 6 of PF act, where it has mentioned that special allowances included in Basic wages
.
Section-6 Contributions and matters which may be provided for in Schemes.
–
The contribution which shall be paid by the employer to the Fund shall be ten percent. Of the basic wages, dearness allowance and retaining allowance, if any, for the time being payable to each of the employees whether employed by him directly or by or through a contract or, and the employee‟s contribution shall be equal to the
contribution payable by the employer in respect of him and may, if any employee so desires, be an amount exceeding ten percent of his basic wages, dearness allowance and retaining allowance if any, subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section: Provided that in its application to any establishment or class of establishments which the Central Government, after making such inquiry as it deems fit, may, by notification in the Official Gazette specify, this section shall be subject to the modification that
for the words “ten percent”, at both the places where they occur, the words “12 percent”
shall be substituted: Provided further that where the amount of any contribution payable under this Act involves a fraction of a rupee, the Scheme
may provide for rounding off of such fraction to the nearest rupee, half of a rupee, or quarter of a rupee.
Explanation I
For the purposes of this section dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee.
Explanation II
For the purposes of this section, “retaining allowance” means allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services
From India, Mumbai
Please Read the Section 6 of PF act, where it has mentioned that special allowances included in Basic wages
.
Section-6 Contributions and matters which may be provided for in Schemes.
–
The contribution which shall be paid by the employer to the Fund shall be ten percent. Of the basic wages, dearness allowance and retaining allowance, if any, for the time being payable to each of the employees whether employed by him directly or by or through a contract or, and the employee‟s contribution shall be equal to the
contribution payable by the employer in respect of him and may, if any employee so desires, be an amount exceeding ten percent of his basic wages, dearness allowance and retaining allowance if any, subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section: Provided that in its application to any establishment or class of establishments which the Central Government, after making such inquiry as it deems fit, may, by notification in the Official Gazette specify, this section shall be subject to the modification that
for the words “ten percent”, at both the places where they occur, the words “12 percent”
shall be substituted: Provided further that where the amount of any contribution payable under this Act involves a fraction of a rupee, the Scheme
may provide for rounding off of such fraction to the nearest rupee, half of a rupee, or quarter of a rupee.
Explanation I
For the purposes of this section dearness allowance shall be deemed to include also the cash value of any food concession allowed to the employee.
Explanation II
For the purposes of this section, “retaining allowance” means allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services
From India, Mumbai
Dear Sir,
As per Sec 2b of the Employees Provident fund and Miscellaneous Provisions act, 1952, “basic wages” means "all emoluments"which are earned by an employee while on duty or 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;
Allowances which are paid to the employees except those referred in sec 2b(ii)(as above) are included in the definition of basic wages.
From India, Chennai
As per Sec 2b of the Employees Provident fund and Miscellaneous Provisions act, 1952, “basic wages” means "all emoluments"which are earned by an employee while on duty or 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;
Allowances which are paid to the employees except those referred in sec 2b(ii)(as above) are included in the definition of basic wages.
From India, Chennai
If the gross salary of an employee is rs.15000 or less per month, and has salary break up into basic, hra, conveyance, medical, meal, and travel allowance how should be it be calculated as per the new pf enhancement rule?
From India, Pune
From India, Pune
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.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf