Dear Sheela,
greetings for the day,
Basically Deduction of EPF is done on basic salary+da/vda+food conc.(if any), as far as special allowance is concern it will be treated as undefined allowance, if you go through the payment of wages act. the term like spl. allowance, other allowances are not in the defination of the same. So the Commisionarate of labour, EPF & various other dept. consider those allowances as omitted wages which should be treated at par with basic wages so contribution of EPF on the same will be justified.
Not it was true all the time but during EPF inspection the such allowances will be consider for deduction of epf.
Thanks & regards,
From,
Sumit Kumar Saxena,
9899669071.
From India, Ghaziabad
252greetings for the day,
Basically Deduction of EPF is done on basic salary+da/vda+food conc.(if any), as far as special allowance is concern it will be treated as undefined allowance, if you go through the payment of wages act. the term like spl. allowance, other allowances are not in the defination of the same. So the Commisionarate of labour, EPF & various other dept. consider those allowances as omitted wages which should be treated at par with basic wages so contribution of EPF on the same will be justified.
Not it was true all the time but during EPF inspection the such allowances will be consider for deduction of epf.
Thanks & regards,
From,
Sumit Kumar Saxena,
9899669071.
From India, Ghaziabad
Dear Saxena,
Adding to your comment, if the special allowance are specifically paid to defray the special expenditure incurred by an employee by the nature of the work undertaken or assigned by the employer, it would not attract PF as it would not be the usual allowance paid to all. However, few employer\'s have the custom of avoiding the PF contribution by keeping the Basic low, for which purpose, they term it as Spl.Allowance, Supplimentary Allow etc..
From India, Bangalore
Adding to your comment, if the special allowance are specifically paid to defray the special expenditure incurred by an employee by the nature of the work undertaken or assigned by the employer, it would not attract PF as it would not be the usual allowance paid to all. However, few employer\'s have the custom of avoiding the PF contribution by keeping the Basic low, for which purpose, they term it as Spl.Allowance, Supplimentary Allow etc..
From India, Bangalore
Hi, can you please suggest a company where post of accounts and finance head is needed. I have 29 years of experience working as Accounts and Finance head.quick reviews will be appreciated. please help.
From India, Chandigarh
From India, Chandigarh
Please help me out in getting new job for the post of Accounts and Finance Head. I have 29 Years of experience in This line.Quick reviews will be highly appreciated.
From India, Chandigarh
From India, Chandigarh
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls