Dear All,
Please clarify my doubt. Why is EPF contribution of 12% (as per section 2b sub cls I, II, III) deducted from earned basic wages only? Why is it not included in gross wages for contribution?
Regards,
Isaiyas
From India, Hosur
Please clarify my doubt. Why is EPF contribution of 12% (as per section 2b sub cls I, II, III) deducted from earned basic wages only? Why is it not included in gross wages for contribution?
Regards,
Isaiyas
From India, Hosur
The intention of the legislation was simple: to give a percentage of basic wages. Basic wages represent wages paid irrespective of the place of work, making them true wages. This is the reason.
From India, Kolkata
180From India, Kolkata
Many establishments are bifurcating the wages into various allowances ignoring the judgments of Gujarat, Madhya Pradesh and Madras High Courts in holding that all allowances except HRA will form part of 'basic wages' to attract provident fund contributions.� Appeals are pending in the Supreme Court against these judgments.� Some of the allowances include as under:
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From India, Bangalore
�
From India, Bangalore
Special Allowance (irrespective of any specialisation), �City Compensation Allowance,� �Tiffin Allowance, �Night Shift Allowance, �Hardship Allowance, �Supplementary Allowance, �Punctuality Allowance, �Attendance Allowance, �Children Education Allowance, �Travelling Allowance, �Uniform Allowance, �Washing Allowance, �Tea Allowance, �Canteen Allowance, �Leave Travel Allowance, �Milk Allowance, �Make Up Allowance, �Newspaper Allowance, �Regularity Allowance, �Suspension Allowance, �Medical Allowance, �Production Allowance, �Heat Gas and Dust Allowance, �Meal/Food Allowance, �Overtime Allowance, �Wellness Allowance, �Performance Allowance, �Field Working Allowance, �Re-Location Allowance, �Compensatory Allowance, �Cash Handling Allowance, �Supervisory Allowance, �Steno Typist Allowance, �Computer Allowance, �Conveyance Allowance, �Area Allowance, �Driver Allowance, �Cycle Allowance, �Entertainment Allowance, �Non-practising allowance, � Additional allowance, �Club Allowance, etc. etc.
From India, Bangalore
From India, Bangalore
Labour Law Index
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The intention of the legislation was simple: to give a percentage of basic wages. Basic wages represent wages paid irrespective of the place of work, making them true wages. This is the reason why 12% is taken only from basic wages. When basic wages are paid for the place of work, all other wage components are also paid. Why is only 12% taken from basic wages and not included in any other wage components? What is the specific reason for taking only from basic wages?
From India, Hosur
Labour Law Index is online now +Follow @Message #2
The intention of the legislation was simple: to give a percentage of basic wages. Basic wages represent wages paid irrespective of the place of work, making them true wages. This is the reason why 12% is taken only from basic wages. When basic wages are paid for the place of work, all other wage components are also paid. Why is only 12% taken from basic wages and not included in any other wage components? What is the specific reason for taking only from basic wages?
From India, Hosur
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