I want to know what is impact of new Code on Wages on Employees Provident Fund Scheme?
From India, undefined
1From India, undefined
In code of wages there is definition of wage and in the recent published of proposed amendment of EPF Act the definition of wage instead of Basic wage is the same. As per the new definition, wages includes Basic, DA and Retention allowance if any and excluded many items including HRA. There is a proviso where it is mentioned that if the other allowances are more than 50% of wage, the extra amount above 50% (or any other % as will be declared by the appropriate govt. ) will add back as wage.
Therefore, PF Wage instead of Basic will be 67% of monthly gross ( 2/3 rd ) and 33% other allowances ( 1/3 rd). There is every possibility in future the definition of wage will same in all labour laws and Gratuity may be required to pay on higher wage.
S K Bandyopadhyay (WB, HOWRAH)
From India, New Delhi
Therefore, PF Wage instead of Basic will be 67% of monthly gross ( 2/3 rd ) and 33% other allowances ( 1/3 rd). There is every possibility in future the definition of wage will same in all labour laws and Gratuity may be required to pay on higher wage.
S K Bandyopadhyay (WB, HOWRAH)
From India, New Delhi
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