A new chapter has been opened by the PF department by issueing notices to pay PF contribution on allowances also.
Girish Patwardhan (advocate ) 05 January 2011
A new chapter has been opened by the PF department by issueing notices to pay PF contribution on allowances also.
Ahmed Daud Girach (Advocate) 05 January 2011
Sec6- contributions shall be paid by employer to the fund shall be Ten percent of the basic wages ,dearness allowance and retaining allowance if any...is clear that Dearness allowance is also considered alongwith basic wages.If it is argument that minimum wages are basic wages plus dearness allowance so onlly basic wages are considered is not correct.present definition will include dearness allowance .Ofcourse legal position was different before 31/12/60then dearness allowance was not considered as wages.It is included in Sec.6 vide Act 46 of 1960,Sec.4for" and dearness allowance".W.E.F.31/12/60
To sum up dearness allowance should be included in calculation of contribution..
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