India - Recent guidelines issued by EPFO on the definition of basic wages are put on hold

Global Watch ()

The Employee Provident Fund Organization (EPFO or Indian Social Security Authorities) recently issued guidelines on the definition of 'basic wages'.  Specifically, certain allowances that are ordinarily, necessarily and uniformly paid to the employees are to be treated as part of 'basic wages'.  Guidelines were also provided on the conduct of an inquiry under Section 7A of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (the Act). For details, please refer to the India Global Watch dated December 14, 2012. The circular containing the above guidelines has been put on hold with immediate effect.