PF Wages

Hi Community,

I have a doubt on EPF Wages?

We have the components in payroll such as Basic Salary, HRA, Medical, Conveyance, Education Allowance, Uniform, Telephone, Professional Development allowance, Special Allowance, Driver Salary reimbursement.

In the above list what all to be covered under “EPF Wages” to be filled in the new employee registration while creating new UAN?



According to the Act, the EPF wages are the basic salary of the employee, Dearness Allowance. apart from this other allowances given to the employee will not be included in it.


Hello Udhai,

Recently we had a PF inspection at our office. They said except HRA we need to pay on other components also.

We have components like Basic, HRA, Conveyance & Special allowance, if basic is less than 15000, we need to add other components except HRA.

Thanks & Regards
Santosh Sambara



All fixed pay will be considered for PF ceiling limit. If employee Salary break up is 12000 as Basic 4800 as HRA and 5000 as Special allowance then Basic + Spl allowance will be added and considered for PF. As here the value will be more then 15000 only 15000 as per ceiling limit will be considered.

  1. What are the components to be considered for the purpose of PF contribution from the wages?

A. After the latest Supreme Court Judgement on Surya Roshni case, dated 28th February 2019, the contribution shall be calculated on the basis of monthly pay containing the following components actually drawn during the whole month whether paid on a daily, weekly, fortnightly or monthly basis:

i. Basic wages

ii. Dearness Allowances

iii. Retaining Allowances

iv. Conveyance Allowances

v. Other Allowance

vi. Special Allowance

vii. Leave Travel Allowances

viii. Fixed cash Allowance (Management allowance, educational Allowance, Medical Allowance, Telephone, Food Allowance etc.)

ix. Petrol Reimbursement (without bills and without supporting documentation/data to substantiate the reimbursement is for official purposes)

x. City Compensatory Allowance or any other allowance paid as fixed component, uniformly and universally having no direct nexus to the outcome of an employee’s normal work.

  1. Which are the excluded components for the computation of EPF?

A. These components are excluded while calculating the EPF:

i. HRA allowance (House rent allowance)

ii. Attendance allowance

iii. Night shift allowance

iv. Washing allowance

v. Relocation allowance

vi. Overtime allowance

vii. Canteen allowance

viii. Various Incentives provided for particular employee

ix. Bonus or Commissions payable to a particular Employee


Durga Devi .K

GM- HR & Finance

Hand Phone: +91 7338467029

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