2019] 41
while
on
duty
but
excludes
the
cash
value
of
food
concession,
dearness
al
lowance, -
HRA,
overtime
allowance,
bonus,
commission
or
any
other
similar
allowance^
payable
to
the
employee
and
any
presents
given
by
the
employer
to^
his
employees,
has
apprehended
that
the
employers
split
up
the
total
wages
payable^
to
their
employees
into
several
allowances
in
such
a
way
that
the
said
allowances^
are
covered
under
the
category
of
exclusions
provided
u/s.
2 (
b
)
of^
the
Act
and
thereby
encouraging
the
subterfuge
of
splitting
up
of
wages
to
reduce^
the
PF
liability,
upto
50 %
of
total
wages.
In
order
to
curb
this,
CPFC
has
directed
for
the
inspection
of
all
those
estab
lishments -
where
PF
contribution
has
been
deducted
on
fifty
per
cent
or
less
of^
total
wages.
Thus,
in
the
above
circular,
the
regulatory
body
CPFC
has
itself
acknowledged
that^
deduction
of
PF
contribution
on
more
than
50 %
of
the
total
wages
is
a
sufficient^
compliance
by
the
establishments
so
as
to
do
away
with
the
require
ment -
of
their
inspection
by
PF
authorities.
In
other
words,
the
Regulatory
Body^
CPFC
has
itself
acknowledged
that
the
establishments
deducting
PF
contribution^
on
more
than
50 %
of
the
total
wages
of
their
employees
are
not
indulging^
in
any
subterfuge
of
splitting
up
of
wages
to
reduce
the
PF
liability.2.2-1-3
RECENT
DELIBERATIONS
BETWEEN
THE
HIGH
LEVEL
COMMIT
TEE -
COMPRISING
OF
PARTICIPATION
FROM
THE
MINISTRY
OF
LABOUR
&^
EMPLOYMENT,
GOVT.
OF
INDIA
AND
THE
REGULATORY
BODY
CPFC-^
In
very
recent
deliberations
between
the
Secretary,
Ministry
of
Labour
&
Employment,^
Govt.
of
India
&
the
Regulatory
Body
EPFO,
the
new
definition
of^
“wages”
has
been
proposed
by
the
Ministry
vide
its
office
memo
bearing
F.No.^
S- 35012 / 10 / 2017 - SS.II
dated
7. 2. 2018
and
comments
from
all
the
stake
holders -
have
been
invited.
The
newly
proposed
definition
of
“wages”,
reads
as
under:
“Wages”
means
all
remuneration
paid
or
payable
in
cash
to
an
employee,
if
the
terms^
emplo^ yofe^ demployment,^ express^ or^ implied,^ were^ fulfilled,^ be^ payable^ to^ a^ person^
any,^ in^ respect^ of^ his^ employment^ of^ work^ in^ such^ employment,^ and^ includes^
—
(a) basic wages,
(b) dearness allowance, and
(c) retaining allowance (if any);
but does not include—(a) (^) ianny bonus, commission or any similar allowance payable to the employee
respect of his employment of work done in such employment;
(b) house rent allowance;
(c) Tmhee (^) divcaallue of any house-accommodation, or of the supply of light, water,
comput^ aatitotenndance^ or^ other^ amenity^ or^ of^ any^ service^ excluded^ from^ the^
Government^ ;of^ wages^ by^ a^ general^ or^ special^ order^ of^ the^ appropriate^
SC RULING HOLDING ALLOWANCES AS PART OF BASIC WAGE