10 September 2010
Contributions The contribution envisaged under sec 6 read with notification dated 9th April 1997 and para 29 of the EPF Scheme, specifies that the rate of contribution under the E.P.F. Act as 12%. The employer has to deposit 12% of the basic wages, dearness allowance and retaining allowance (if any), on his part and an equivalent amount on behalf of the employee, which is to be recovered from the employee’ salary (para 32 of EPF Scheme). • For this section ‘dearness allowance’ shall be deemed to include the cash value of any food concession allowed to the employee. The ‘retaining allowance’ means an allowance payable for the time being to an employee for retaining his services, when the establishment is not working.
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