Recent Supreme Court ruling on Basic Wages for the purpose of PF contributions


SESSION: 3:00 pm to 4:00 pm (IST)


The Supreme Court (SC) has recently settled the position on what constitutes basic wages for provident fund contributions. The SC has in its judgement dated February 28, 2019 ruled that only allowances which are variable in nature or which are not paid to workers across the board or category, could be excluded from the definition of ‘basic wages’ for the purpose of PF contribution. As a result of this judgement, employers may need to re-consider their compensation structure to ensure that the correct amount of PF is contributed. In a way, the considerations from social security and tax law perspectives could be at cross-roads.


In this backdrop, NASSCOM in association with Nishith Desai Associates has organized a Webinar on March 19th,2019 from 3.00 pm - 4.00 pm (IST), to discuss the potential impact of the judgment on the member companies.


It is our pleasure to invite you to this important webinar. The agenda and the registration link are appended below for your kind reference.


The webinar will touch upon the following points.

  • Effect of the judgment upon the employers
  • Allowances which may fall under the definition of basic wages
  • Liability of employers with respect to past contributions
  • Effect of the judgment on the domestic workers vis-à-vis international workers
  • Obligations of establishments with respect to employees whose basic wages (plus DA) is more than Rs. 15,000 per month
  • Obligations in relation to contract labourers

Panellists :

Vikram Shroff, Leader - HR Law, Nishith Desai Associates.

Preetha Soman, Senior Associate - HR Law, Nishith Desai Associates.

Archita Mohapatra, Associate - HR Law, Nishith Desai Associates.


Registration Link: (After registering, you will receive a confirmation email containing information about joining the webinar.)