Definition of Basic Wages for PF contributions

[Ashwani Rustagi]

As we know that the Govt. of India, Ministry of Labor and Employment has issued notification enhancing statutory wages ceilings from existing ₹ 6,500/- to ₹ 15,000/-.

My question is what does statutory wages constitutes? Is it only basis pay or includes all emoluments like basic pay, dearness allowance and other retaining allowance like conveyance, city compensatory allowance, personal allowance etc. etc. The house rent allowance has been excluded from the definition of wages. Different courts has given various decisions on the definition of wages for PF contribution.

Can some-one advise me what is the status of wages definition as on date? It is a central legislation but vary from state to state.

Ashwani Rustagi

9810013724

Gurgaon, Haryana.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

[Ashwani Rustagi]

Not yet. But act is very clear it will include all emoluments like basic pay, dearness allowance and other retaining allowance like conveyance, city compensatory allowance, personal allowance etc. etc. The house rent allowance has been excluded from the definition of wages.

If you have any further input on this, please advise.

Regards,

AI Summary

Definition of statutory wages: includes basic pay, dearness allowance and retaining allowances; house rent allowance excluded. Whether statutory wages for provident fund contributions comprise only basic pay or also include dearness allowance and other retaining allowances such as conveyance, city compensatory allowance and personal allowance, noting that house rent allowance is excluded; a respondent adopts a broad approach including basic pay, dearness allowance and retaining allowances for PF calculation, while judicial decisions and state implementations have varied following a central notification increasing the wage ceiling.