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Components forming part of Wages for deciding contribution under Provident Fund Act, effect of splitting salary into components/allowances and its effect on Contribution under Provident Fund Act
I. Components forming part of wages under the Provident Fund Act Section 6 of the Provident Fund Act in India provides for “Contribution”. The Section reads as under; ‘The Contribution which shall be paid by the employer to the Fund shall be twelve per cent of the basic wages, dearness allowance and retaining allowance (if any) for the time being payable to each of the employees (whether employed by him directly or by or through…
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