salary definition for PF contribution
This query is : Resolved
Prashantha K L
(Querist)
14 May 2011
Dear All,
whether salary includes basic pay, DA (if it is taken for retirement benefit)and encashment of earned leave
whether salary includes basic pay, DA (if it is taken for retirement benefit)and encashment of earned leave
Ram Avtar Singh
(Expert)
14 May 2011
Apart from Basic Salary, Dearness Allowances (variable according to changes in cost of living index or fixed as a percentage of basic pay) and Retaining allowances (allowances paid to employee(s) to retain his skill especially when there is no work due to any reason) are part of salary for the purpose of EPF contribution. If the salary structure does not include any DA but includes something called 'special allowance', the same may also be treated as part of salary for the purpose of EPF contribution. The reason being that special allowances may be interpreted as an allowance to meet changes in cost of living and as such it will have all attributes of DA.
Ram Avtar Singh
(Expert)
14 May 2011
Basic Wages:
"Basic Wages" means all emoluments which are earned by employee while on duty or on leave or holiday with wages in either case in accordance with the terms of the contract of employment and witch are paid or payable in cash, but dose not include
The cash value of any food concession;
Any dearness allowance (that is to say, all cash payment by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other allowance payable to the employee in respect of employment or of work done in such employment.
Any present made by the employer.
"Basic Wages" means all emoluments which are earned by employee while on duty or on leave or holiday with wages in either case in accordance with the terms of the contract of employment and witch are paid or payable in cash, but dose not include
The cash value of any food concession;
Any dearness allowance (that is to say, all cash payment by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other allowance payable to the employee in respect of employment or of work done in such employment.
Any present made by the employer.
Message likes :
1 times
Prashantha K L
(Querist)
14 May 2011
Whether Encashment of earned leave form part of salary for the purpose of EPF contribution?
Ram Avtar Singh
(Expert)
18 May 2011
yes its part of salary
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- MSME disclosure and disallowance
- EPF ECR NEW RULES Sep 17th 2026
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
