Issue as to whether other allowances paid by employer is covered under “basic wage” for the purpose of calculating provident fund contribution has been finally Heard & Reserved, by Hon’ble Supreme Court of India, order dated 6th February 2019 in the case of Surya Roshini Ltd (Case No 1487 of 2012). There are other tagged matters also. Judgement once delivered will put lot of things at rest as it will be bring a lot of clarity w.r.t as to which all allownaces will form part of “basic wages” for the purpose of calcualtion of provident fund contribution.
Earlier also Hon’ble Supreme Court of India has delivered various judgement in the subject matter. Some of the cases are e.g Manipal Academy, Jay Engineering Works, Cycles of India & Bridge and Roofs Co. Ltd. However every eye is on for this judgement which is going to be a land mark judgemnet in the subject matter.
Will keep you updated once judgement is being delivered by Hon’ble Supreme Court of India