ThynkTax /Tax Reference /Case Laws /Vivekananda Vidyamandir - Special allowance

Vivekananda Vidyamandir - Special allowance

Supreme Court of India·2019·ESI_PF
Facts

Whether "special allowance" forms part of "basic wages" for PF contribution.

Issue

Definition under EPF Act Section 2(b).

Held

Allowances ordinarily paid to all employees as a part of regular wages form part of basic wages; only allowances tied to specific contingencies are excluded.

Ratio

PF contribution base is broader than employer practice - universal regular allowances are included.

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