Epfo circular 30.11.2012
Saurabh Kumar Singh
(Querist) 15 December 2012
This query is : Resolved
Dear Members,
As per the circular dated November 30, 2012, was issued after internal review meetings held in late November and has beenforwarded to Employee Provident Fund offices across India. Historically, most companies have been computing provident fund (PF) contributions (at 12% each by the employer and employee) against basic salary and dearness allowance only. However, the definition of basic wages has been a contentious issue, with PF authorities claiming that companies split the basic wages into various allowances to reduce the quantum of PF contributions.
The circular deals with this “splitting up” practice adopted by employers. It states that basic wages will include all allowances which are “ordinarily, necessarily and uniformly” paid to the employees. Thus, various allowances such as conveyance, educational allowance, medical allowance, etc., will have to be taken into consideration while computing the PF contribution.
my query is how can we implement the provision of said circular plz guide.
Arihant AC
(Expert) 15 December 2012
Dear Saurabh
Please find following attachment.
http://timesofindia.indiatimes.com/india/Government-to-review-EPF-circular-on-salary-allowances/articleshow/17619944.cms
Raj Kumar Makkad
(Expert) 15 December 2012
Wait and watch the action of the department.
