Tuesday, October 15, 2013

Canteen allowance part of basic wages for PF deduction

The Delhi High Court has said that Canteen allowance paid by the employer to employees is
part of basic wages and is required to be taken into account while computing the provident fund
contribution. A circular in November last year had redefined the meaning of "basic wages" for
the purpose of provident fund deductions. It said:"All such allowances which are ordinarily,
necessarily and uniformly paid to the employees are to be treated as the basic wages."


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