[cajobportal Insights] Will the Supreme Court judgement reduce your takehome salary
Yesterday, the Supreme Court issued a combined judgement on cases involving the Regional Provident Fund Commissioner ( RPFC) Vs Vivekanand Vidyamandir , Surya Roshni, U-Flex, Montage Enterprises and Saint Gobain (Attached the judgement https://bit.ly/2T61z40 ) The question placed before the bench for adjudication was whether special allowances paid by an establishment to its employees will fall within the expression ‘basic wages’ under Section 2(b)(ii) read with Section 6 of the PF Act for computation of deduction towards PF. Clause 14 of the judgment read, “The wage structure and the components of salary have been examined on facts, both by the authority and the appellate authority under the Act, which have arrived at a factual conclusion that allowances in question were essentially a part of the basic wage camouflaged as part of an allowance so as to avoid deduction and contribution accordingly to the PF account of the employees. The bench cited the...