Dear All,
Please inform, which components are related to PF Salary. Normally, Basic and DA are the components of PF Salary, but some friends are mentioning that other components like Special Allowance and other allowances are also related to PF Salary. Is this correct or not? Please clarify.
From India, Hyderabad
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1Please inform, which components are related to PF Salary. Normally, Basic and DA are the components of PF Salary, but some friends are mentioning that other components like Special Allowance and other allowances are also related to PF Salary. Is this correct or not? Please clarify.
From India, Hyderabad
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Please go through the definition of wages in the EPF & MP Act, it will clear your doubts. Normally special allowance is exposed to PF.
From India, Thane
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From India, Thane
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Dear Bharat ji,
I have gone through the Act once again on your above posting but I could not find a definition of "Wages" in it. There is a definition of "Basic Wages."
Why do you say "Normally special allowance is exposed to PF"?
Can you please elaborate on it so that the readers will understand better?
From India, Mumbai
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I have gone through the Act once again on your above posting but I could not find a definition of "Wages" in it. There is a definition of "Basic Wages."
Why do you say "Normally special allowance is exposed to PF"?
Can you please elaborate on it so that the readers will understand better?
From India, Mumbai
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Dear Bharatji, Please peruse Judgement wherein it is mentioned that "Special Allowance is not part of basic Wages"
From India, New Delhi
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From India, New Delhi
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Dear All Please inform , about PF AMENDMENT OF EMPLOYEE SHARE & EMPLOYER SHARE Thanks & Regards pramod Kumar
From India, New Delhi
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From India, New Delhi
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Dear members, Now the SC judgment on 'Spl.Allowance' is passed on 28.2.2019 all your interpretations on this issue has been settled once and for all. Pl.read the copy of judgment attached.
From India, Bangalore
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From India, Bangalore
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Dear All,
Please find the attached interpretation and impact on PF Contribution post Supreme Court’s verdict by Bench of Justices Arun Mishra and Naveen Sinha.
Essentially, it means that the PF contribution will be on the total amount including all the allowances paid to an employee and not just on the basic salary.
The Supreme Court ruled that 'special allowance' must be included in basic pay for calculation of provident fund (PF) deduction from employees and the company.
A bench of Justices Arun Mishra and Naveen Sinha dismissed appeals filed by many companies questioning the Provident Fund Commissioner’s decision to club basic pay with special allowances / other allowances for the purpose of deduction of PF and matching contribution by employers.
Crux and key pointers here are as under -
1. PF ceiling of 15,000/-pm is same ,it has not been revised.
2. If minimum PF contribution as per ceiling is paid i.e 1800/- PM from Both Employee And Employer then there is no need to change.
3. IF contribution is less than 1800 and if Gross is more or up to 15,000/- Rs pm , where Basic is less than 15,000 and remaining amount is bifurcated among different heads then excluding HRA And Statutory Bonus, all other heads to be considered with Basic for framing PF wages up to 15,000/- or on total of all heads if total of all heads is less than 15,000/- then on that entire total amount as arrived to considered as wage for PF to be calculated on.
4. There is no new provision but it is interpretation to the existing section/ Term. Hence date of implication is not expected it is ongoing rule.
5. PF authority may have recourse to the verdict of SC while conducting the inspections and computation of liability up to wage ceiling as defined under the law
From India, Pune
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Please find the attached interpretation and impact on PF Contribution post Supreme Court’s verdict by Bench of Justices Arun Mishra and Naveen Sinha.
Essentially, it means that the PF contribution will be on the total amount including all the allowances paid to an employee and not just on the basic salary.
The Supreme Court ruled that 'special allowance' must be included in basic pay for calculation of provident fund (PF) deduction from employees and the company.
A bench of Justices Arun Mishra and Naveen Sinha dismissed appeals filed by many companies questioning the Provident Fund Commissioner’s decision to club basic pay with special allowances / other allowances for the purpose of deduction of PF and matching contribution by employers.
Crux and key pointers here are as under -
1. PF ceiling of 15,000/-pm is same ,it has not been revised.
2. If minimum PF contribution as per ceiling is paid i.e 1800/- PM from Both Employee And Employer then there is no need to change.
3. IF contribution is less than 1800 and if Gross is more or up to 15,000/- Rs pm , where Basic is less than 15,000 and remaining amount is bifurcated among different heads then excluding HRA And Statutory Bonus, all other heads to be considered with Basic for framing PF wages up to 15,000/- or on total of all heads if total of all heads is less than 15,000/- then on that entire total amount as arrived to considered as wage for PF to be calculated on.
4. There is no new provision but it is interpretation to the existing section/ Term. Hence date of implication is not expected it is ongoing rule.
5. PF authority may have recourse to the verdict of SC while conducting the inspections and computation of liability up to wage ceiling as defined under the law
From India, Pune
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Everything PF Related.pdf