The definition of ‘Basic Wages’ has been defined under Section 2(b) of the EPF as below: Section 2(b) “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include i. the cash value of any food concession; ii. any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), houserent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment; iii. any presents made by the employer;
10% rate is applicable for Any establishment in which less than 20 employees are employed. Any sick industrial company and which has been declared as such by the Board for Industrial and Financial Reconstruction Any establishment which has at the end of any financial year, accumulated losses equal to or exceeding its entire net worth and Any establishment in following industries:- (a) Jute (b) Beedi (c) Brick (d) Coir and (e) Guar gum Factories.
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