News: Court rules canteen allowance as basic wage

Compensation & Benefits

Court rules canteen allowance as basic wage

Canteen allowance paid by the employer to employees is part of basic wages and is required to be taken into account while computing th provident fund contribution, the Delhi High Court has said in a ruling. The retirement fund body, EPFO, circulated this order in its website yesterday for reference for its field staff. Earlier, the retirement fund body Employees' Provident Fund Organisation had even brought out a circular in November last year that sought to club allowances with basic wages for computing PF contribution.

Canteen allowance paid by the employer to employees is part of basic wages and is required to be taken into account while computing th provident fund contribution, the Delhi High Court has said in a ruling. The retirement fund body, EPFO, circulated this order in its website yesterday for reference for its field staff. Earlier, the retirement fund body Employees' Provident Fund Organisation had even brought out a circular in November last year that sought to club allowances with basic wages for computing PF contribution.

Read the Economic Times news report here.

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Topics: Compensation & Benefits, #National, #TotalRewards, #Current

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