India: Recent case concludes that canteen allowances

Global Watch ()

Recently, in the case of Whirlpool of India Limited (the petitioner), the Delhi High Court (HC) held that a ‘canteen allowance’ paid to all permanent workers is part of ‘basic wages’, as defined under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (Act). The petitioner was therefore liable to compute and pay provident fund (PF) contributions on such amount. As a result, global mobility managers should review whether they pay a similar allowance and whether such amounts are taken into account when calculating PF contributions.