Definition of ‘basic wages’ for calculation of PF contribution

Oct 01 2013, 13:19 IST
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SummaryIn a recent ruling that favours employees, the Delhi High Court has expanded the scope of basic wages to be included for Provident Fund

‘any other similar allowance’ would, therefore, mean an allowance which is similar to commission.

There may be further deliberations and clarifications on this specific point in future rulings. A similar issue relating to the definition of basic wages is pending before the Supreme Court. It is likely that more certainty on the matter may come after the Supreme Court passes its judgment.

* The writer is manager, Tax & Regulatory Services, EY. Views expressed are personal

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