The Madras High Court in the case of Reynolds Pens India Pvt Ltd and other petitioners (‘Petitioners’) vs Regional Provident Fund Commissioner has held that certain allowances such as Conveyance, Educational Allowances, Food concession, Medical, Special Holidays, Night Shift Incentive, City Compensatory Allowances etc. should be treated as part of Basic wages under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 . Accordingly, provident fund contributions should be remitted on such allowances.
https://www.epfindia.com/Circulars/Y2011-12/Coord_JudgmentWages_13783.pdf
Courtesy : KPMG Newsletter
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