2019] 43
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.
2.4 Need of the Hour : Avoidance of High Handed Approach by EPFO Deptt.
& Officers, after the said SC Judgment -
The
above
RTI
Response
and
Circu
lars -
issued
by
the
Governing
&
Regulatory
Bodies,
viz.,
the
Labour
Ministry,
the^
EPFO
&
the
CPFC,
make
it
duly
evident
that
the
stand
of
those
governing
and^
regulatory
bodies,
concerning
the
non-deduction
of
PF
contribution
on
allowances,^
has
always
been
very
clear
and
unambiguous.
Unfortunately,
the
EPFO
field
officers
are
resorting
to
the
outright
and
bla
tant -
misuse
of
the
captioned
judgment
of
the
Supreme
Court,
to
put
undue
pressure^
on
Factories,
Shops
&
Establishments
for
PF
collections
for
meeting
out^
their
budgetary
targets
for
improving
service
records,
and
even
for
their
vested^
and
mala fideinterests.
It
is
a
cardinal
principle
of
Law
that
the
Circulars/Notifications
issued
by
the
Law^
Enforcing/Regulatory
Bodies
are
binding
on
them.
They
cannot
deviate
from^
their
own
circulars
and
notifications.Concluding remarks
Suitable
instructions
may
be
given
to
the
EPFO
Deptt.
and
its
Officers
to
avoid^
the
high
handed
approach,
especially
with
the
bona fideand
genuine
establishments,^
who
are
contributing
atleast
50 %
of
total
wages
of
their
employ
ees -
as
PF
contribution
with
the
EPFO,
in
order
to
achieve
the
Governments’
objective^
of
“ease
of
doing
business”
in
real
and
effective
sense.
Next
time
you
are
in
receipt
of
Notice
u/s
7 A
of
EPF
&
MP
Act,
1952 ,
asking
to^
deposit
PF
contribution
on
each
and
every
allowance
paid
by
you
to
your
employees,^
don't
succumb
to
their
unlawful
pressure
tactics.
Confront
them
with^
the
above
stated
legal
and
factual
propositions....nn
SC RULING HOLDING ALLOWANCES AS PART OF BASIC WAGE