BIZ-PF

PF litigations expected to come down after SC ruling: RPFC
    Kolkata, Mar 15 (PTI) Provident Fund deduction related
litigations with the EPFO is likely to reduce after the
Supreme Court ruling that special allowance paid by an
employer is part of basic wages for EPF dues computation.
    The apex court in its judgement has ruled that special
allowance is part of the basic wages for computing the
employees provident fund (EPF). The employer as well as the
employee pay 12 per cent of basic wages each towards
contribution for social security scheme run by the Employees'
Provident Fund Organisation (EPFO).
    "The order just upheld the existing sections of the
EPF Act. After this ruling, it is expected that litigations
related to deductions toward provident fund will be reduced,"
RPFC Navendu Rai said on the sidelines of a seminar organised
by the ICC on the EPF Act.
    The apex court decision came when it was dealing with
a question on whether special allowances paid by an
establishment to its employees would fall within the
expression "basic wages" under the provision of the Employees'
Provident Fund and Miscellaneous Provisions Act, 1952 for
computation of deduction towards provident fund.
    Meanwhile, the Provident Fund (PF) balance transferred
from one's ex-employer will become an automated process as the
EPFO is doing away with the manual process in place now,
Additional CPFC EPFO, S K Sangma said. PTI BSM
MM MM