Amendment in the Employees’ Provident Funds & Miscellaneous Provisions (EPF and MP) Act, 1952

‘(n) “wages” means all remuneration whether by way of salary, allowances or otherwise, expressed in terms of money or capable of being so expressed which would, if the terms of employment , express or implied, were fulfilled , be payable to a person employed in respect of his employment or of work done in such employment, and includes,-

(i) basic pay;

(ii) dearness allowance; and

(iii) retaining allowance , if any;

but does not include-

(a) any bonus payable under any law for the time being in force, which does not form part of the remuneration payable under the terms of employment;

(b) the value of any house-accommodation , or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the appropriate Government;

(c) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;

(d) any conveyance allowance or the value of any travelling concession;

(e) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment ;

(f) house rent allowance;

(g) remuneration payable under any award or settlement between the parties or order of a court or Tribunal;

(h) any overtime allowance

(i) any commission payable to the employee;

(j) any gratuity payable on the termination of employment ;

(k) any retrenchment compensation or other retirement benefit payable to the employee or any ex gratia payment made to him on the termination of employment:

Provided that, for calculating the wages under this clause, if payments made by the employer to the employee under clauses (a) to (i) exceeds one half, or such other per cent. as may be notified in the Official Gazette by the Central Government , of the all remuneration calculated under this clause, the amount which exceeds such one-half, or the per cent. so notified, shall be deemed as remuneration and shall be accordingly added in wages under this clause.


Explanation /.- Where an employee is given in lieu of the whole or part of the wages payable to him, any remuneration in kind by his employer, the value of such remuneration in kind which does not exceed fifteen per cent. of the total wages payable to him, shall be deemed to form part of the wages of such employee.


Explanation II.- For the purposes of this clause, “retaining allowance” means allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working , for retaining his services.’

(a) for the words and brackets “basic wages , dearness allowance and retaining allowance (if any)” wherever they occur, the word “wages” shall be substituted;

(b) in section 6A, in sub-section (2), in clause (a), for the words “basic wages , dearness allowance and retaining allowance, if any”, the word “wages” shall be substituted;

Provided that in its application to the establishments or class of establishments which the Central Government , after making such inquiry as it deems fit, may, by notification in the Official Gazette, specify, this section shall be subject to the modification that for the words “twelve per cent.” at both the places where they occur, the words “ten per cent.” shall be substituted:

Provided further that the Central Government , after making such inquiry as it deems fit, may, by notification in Official Gazette, specify rates of contributions and the period for which such rates shall apply for any class of employee.

Provided also that where the amount of any contribution payable under this Act involves a fraction of a rupee, the Scheme may provide for rounding off of such fraction to the nearest rupee, half of a rupee, or quarter of a rupee.”

Provided that where the inquiry is not concluded within the said period of two year, the officer conducting such inquiry shall record the reasons for not having concluded so and submit the reasons so recorded to the Central Provident Fund Commissioner , or such other officer authorised by him on this behalf.”.

Provided that the application under this sub-sect ion shall be deemed to have been allowed from the date of submission of application if no order is passed within a period of sixty days from the date of submission of such application.