Motilal Oswal
  • SENSEX
    NIFTY 50
Motilal Oswal
VIDEOS
Personal Finance

Supreme Court says special allowance part of basic salary for PF calculations: Here's what experts have to say

Updated : March 26, 2019 11:18 PM IST

The Supreme Court (SC) in a judgement has brought about certain sweeping changes in the savings that end up forming the Employee Provident Fund Organisation (EPFO) corpus.

The apex court in its judgement has ruled that special allowance is part of the basic wages for computing the employee's provident fund (EPF). This means lesser take-home salary in the immediate term, but a larger retirement corpus when you leave the workforce.

While the order came on March 1, several questions with respect to its implementation still need to be answered. Preeti Chandrashekhar, India business leader, Mercer and Punit Gupta, partner EY, discussed the same.
primo org
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV