PF
ramesh gupta
(Querist) 09 March 2011
This query is : Resolved
We have salary break up as basic,HRA,conveyance allowance, industrial allowance, skill allowance and telephone allowance. Pf authorities are of the view that all these allowances should be taken as DA and PF should be applied on that. Please advise your expert views.
Guest
(Expert) 09 March 2011
Dear Ramesh,
Ask the PF authorities to provide appropriate ruling in support of their contention.
HRA, Conveyance, Skill Allowance and Telephone Allowance are not granted in consideration of ever increasing consumer price index or any other element considered for grant of dearness allowance.
Raj Kumar Makkad
(Expert) 09 March 2011
The contension of authorities is absolutely wrong. Basic, DA, Retaining Allowance and Food concession, if any can only be included while determining PF of an employee.
Kirti Kar Tripathi
(Expert) 10 March 2011
Mr. Parth is right,DA and PF is applicable only on Basic Pay
Guest
(Expert) 10 March 2011
Dear Shri Ramesh,
In view of the provisions of Section 6 of the Employees Provident Fund Act, as extracted below, Mr. Makkad's brief reply is quite correct.
EXTRACT OF SECTION 6 of EPF
6. Contributions and matters which may be provided for in the Scheme
The contribution which shall be paid by the employer to the Fund shall eight and one-third per cent of the basic wages dearness allowances 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 contractor) and the employees' contribution shall be equal to the contribution payable by the employer in respect of him and may if any employee so desires and if the Scheme makes provision therefore be an amount not exceeding eight and one-third per cent of his basic wages dearness allowances 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 "eight and one-third per cent" at both the places where they occur the words "ten per cent" 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 the rounding off of such fraction to the nearest rupee half of a rupee or quarter to a rupee.
Explanation 1 : 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 2 : For the purposes of this section retaining allowance means an 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.
PS Dhingra
Chief Executive Officer
Dhingra Group of Management & Vigilance Consultants
New Delhi-110089
Mobile: 09968076381
[dcgroup1962@gmail.com]
ramesh gupta
(Querist) 10 March 2011
Dear All,
Thank you so much for taking interest in replying to the above mentioned query.
Regards,
