Pf contribution
mouraly
(Querist) 12 November 2011
This query is : Resolved
In Pondicherry, in the month of June'11 the Asst PF Commissioner has started collecting PF Contribution from various heading like Basic, D.A., all type of allowances and incentives, EXCEPT H.R.A. and Overtime Allowances upto the limit of Rs. 6,500/-. This rule comes in retrospective effect from April'2010 onwards.
Previously PF contribution is only BASIC and D.A.
Whether collecting contribution in all types of allowances and incentives EXCEPT H.R.A. and Overtime Allowances, is legally binding or not. I need some details clarification. Kindly note of references supporting with authorities.
Nadeem Qureshi
(Expert) 12 November 2011
Dear Mouraly
PF contribution is deducted from basic, DA, HRA. Madical and other allowances but not in incetives
A K CHANDOK
(Expert) 12 November 2011
Dear Sir,
Not all the allowances and incentives are subject to P.F. deductions. The Hon,ble Supreme court has given rulings on various items which are not part of Basic wages and as such are not falling under the definition of Basic Wages.For details , pl. refer any Text book on EPF & MP Act 1952 and find out these items.If not in a position to consult the Text book ,pl mention each item, I will try to give my opinion,if that item is subject to PF deduction or not along with citation.
With Regards,
A K CHANDOK
RPFC (Retd.)
chandokak@yahoo.co.in
www.akchandok.com
09988021715
mouraly
(Querist) 13 November 2011
Thanks Experts
I will mention the items falling under PF contribution, BASIC, D.A., PRODUCTION INCENTIVE, ATTENDANCE INCENTIVES, CONVEYANCE ALLOWANCES, WASHING ALLOWANCES, CITY COMPENSATARY ALLOWANCES, the only exception is H.R.A. AND OVERTIME ALLOWANCE.
In this way here (Pondicherry) PF commissioner is collecting. this is right or not. please explain.......
