Is vda is attracted for pf deductions

It is felt that PF, Gratuity should be paid on Basic+ DA,{ VDA ( Wherever applicable) }

>>>> The issue of VDA has been addressed by:

Supreme Court of India

Airfreight Ltd. vs State Of Karnataka & Ors.

………………………………V.D.A. is part and parcel of wages.

25………………….. Dearness Allowance is part and parcel of cost of necessities. In cases where the minimum rates of wages is linked up with V.D.A., it would not mean that it is a separate component which is required to be paid separately where the employer pays a total pay package which is more than the prescribed minimum rate of wages.

26……………..(3) Minimum rate of wages fixed under the Act is remuneration payable to the worker as one package of fixed amount. In cases where minimum wage is linked with the cost of living index, the amount paid on the basis of dearness allowance is not to be taken as an independent component of the minimum wages but as part and parcel of the process of computing the rates of minimum wages which is to be determined after taking into consideration the cost of various necessities.

>>>> You may also go thru:

The Employees’ Provident Fund Scheme, 1952

CHAPTER V: Contributions :29: Contributions

Valuable advice learned experts/members is sought.

Dear Mr. Kumar Doab,

Yes , for Minimum wages is concern Basic + VDA is one set for wages. But as per the abrivation under PF act as per CHAPTER - V (29)

CHAPTER V 

Contributions 

29. Contributions

(1) The contributions payable by the employer under the Scheme shall be 

at the rate of [ten per cent] of the [basic wages, dearness allowance 

(including the cash value of any food concession) and retaining allowance (if 

any)] payable to each employee to whom the Scheme applies: 

Provided that the above rate of contribution shall be [twelve] per cent in 

respect of any establishment or class of establishments which the Central 

Government may specify in the Official Gazette from time to time under the 

first proviso to sub-section (1) of section 6 of the Act. 

(2) The contribution payable by the employee under the Scheme, shall be 

equal to the contribution payable by the employer in respect of such 

employee: 

Provided that in respect of any employee to whom the Scheme applies, the 

contribution payable by him may, if he so desires, be an amount exceeding 

[ten per cent] or [twelve per cent], as the case may be, of his basic wages, 

dearness allowance 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 the Act; 

(3) The contributions shall be calculated on the basis of [basic wages, 

dearness allowance (including the cash value of any food concession) and 

retaining allowance (if any)] actually drawn during the whole month whether 

paid on daily, weekly, fortnightly or monthly basis. 

(4) Each contribution shall be calculated to [the nearest rupee, 50 paise or 

more to be counted as the next higher rupee and fraction of a rupee less 

than 50 paise to be ignored. 

No ware that VDA has mentioned for the attraction of Provident Fund.

PLEASE KINDLY CONFIRM IT . MOST URGENT. 

Also please see my attachment of this trailing message (previous).

Regards,

PBS KUMAR

PBS KUMAR

Our understanding is DA, VDA is made part of Min. Wages.

PF is applicable on Min.Wages.

Kindly take up with your legal cell.

Supreme Court of India

Airfreight Ltd. vs State Of Karnataka & Ors.

Is available at and is attached again in word format:

https://www.indiankanoon.org/doc/1146344/

https://www.indiankanoon.org/doc/1146344/?type=print

Valuable advice learned experts/members is sought.

Dear Experts,

Please kindly confirm it above quarry ....................

My opinion  PF is BASIC + DA, The VDA will be changing every quarter so is it considered

as part of DA ?

Regards,

The revised VDA will increase the Min Wages.

The notification on such increase is issued by Ministry and received by concerned Labor Office/Officials.

PF may be paid on increased/revised Min. Wages.

The employers and Trade Unions can obtain such notifications from respective Labor Office/Officials.

Copy of one such notification is attached.

It can also be downloaded from:

https://www.ilo.org/dyn/travail/docs/629/Revision%20of%20Variable%20Dearness%20Allowance%20and%20thus%20increase%20in%20Minimum%20Wages%20in%20Mines%20and%20Government%20establishments.pdf

Kindly take up with your legal cell.

Attached