From when we have to implement the PF deduction on other allowance from employee salary as per the judgement of Supreme Court

Hello,

Thank you, sir. I would like to know what it means that legally we cannot recover. Are there any laws, rules, or judgments regarding this issue, not limited only to PF recovery but any other type of recovery from back wages?

Regards

Dear All,

I have a query on PF deduction on gross salary (excluding HRA). My management does not agree to deduct PF on the gross; they have said to obtain a notification from the PF Office. When I went to the PF office, none of the officers clearly explained this matter.

Please suggest how I can convince the management on this issue.

Dear All,

I have a query on PF deduction on the gross salary (excluding HRA). My management does not agree to deduct PF on the gross amount. They have said to obtain a notification from the PF Office. However, when I visited the PF office, the officers there did not provide clear information on this matter.

Thank you.

In view of the change due to the recent judgment of the Honorable Supreme Court regarding the definition and clarification of basic wages for the purpose of calculating PF contributions, the following clarifications are sought:

Q. Will this judgment affect the calculation of Payment of Gratuity, Leave Encashment, and Overtime? Also, please clarify with supporting Supreme Court judgments which components should be considered for the calculation of Gratuity, Leave Encashement, and O.T.

Currently, we are calculating based on Basic and D.A. for all purposes such as Gratuity, Leave Encashment, and Overtime.

Regards,
R K Dixit

Basic salary under the Payment of Gratuity Act is also similar to the one given under the EPF & MP Act. As such, whatever is considered for payment while on leave or deduction while on leave without pay shall be considered as Basic Wages. If you take a couple of days' leave without pay, it is not that you will get all allowances in full, and only two days' basic pay as per your structure will be deducted. The same concept will apply to encashment of leaves and calculation of overtime wages as well. I don't have any court verdict in support, but I am sure that the next battle will be for this interpretation.

Thank you very much, sir, for the clarification.