"Whatever is payable by all concerns or earned by all
permanent employees had to be included in basic wage for the
purpose of deduction under section 6 of the
Act."1
INTRODUCTION
The Hon'ble Supreme Court of India2 vide its
judgment dated 28/02/20193 (the "Judgment")
held that all amounts, whether or not categorized as
"allowances", if paid equally across the board to all
employees, should be considered as part & parcel of the
"basic wage" for the purpose of calculation of provident
fund ('PF') contribution under section 6 of the
Employees' Provident Fund and Miscellaneous Provisions Act,
1952 (the "Act").
MATTER BEFORE THE HON'BLE COURT
The Hon'ble Apex Court while hearing a bunch of
Appeals4 had before itself quite a variety of allowances
forming part of the salary structures applied by the parties to
these proceedings respectively, namely:
