Legal Tip – Food allowance not to be `basic wage’ for provident fund contributions

15 Nov

Food allowance not to be `basic wage’ for provident fund contributions

Food allowance cannot be treated as cash value for food concession. Basic wage means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include-

(i)                The case value of any food concession

(ii)             Any dearness allowance

(iii)           Any presents made by the employer

Regards,

Pinal Mehta

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: