BASAVARAJAPPA.C (HR) 08 December 2009

Special Allowance

Dear Sir;s

We have salary components such as Basic , DA, HRA ,Conveyance Allowance & Special Allowance. As we know the PF deductions are to be made only on Basic & DA but recently one of PF inspector in Mumbai region is insisting to deduct PF on the Special Allowance.

Kindly clarify with any PF notification, circular or latest judgement of Mumbai High court or Apex court order on this context to defend this with the PF Authorities.

Thanks & regards

Basavaraj

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2 Replies

V. VASUDEVAN (LEGAL COUNSEL) 08 December 2009

Dear Mr. Basavaraj,

For Maharasthra Region, the DA is known as Special Allowance. Please the minimum wage slabs for Mah, available in the Bombay Chamber's website (bcci.com). Probably PF inspector should be referring to this. In case you have a separate component of DA and the Special allowance is not a fixed component of wages (e.g. special allowance given for conveyance, mobile phone, etc.,) you may explain the facts to the PF Inspector.

Vasudevan