As per Section 2(88) of the Code on Wages, 2019,
“wages” means all remuneration, whether by way of salaries,
allowances or otherwise, expressed in terms of money or capable of being so expressed,
which would, if the terms of employment were fulfilled, be payable to a person
employed in respect of his employment or work done.
Wages include:
- Basic Pay
- Dearness Allowance (DA)
- Retaining Allowance, if any
Wages do NOT include:
- Bonus payable under any law
- House Rent Allowance (HRA)
- Employer’s contribution to PF or Pension
- Conveyance or travelling allowance
- Special expense reimbursement
- Overtime allowance
- Commission
- Gratuity, retrenchment compensation or ex-gratia on termination
Important Proviso:
If excluded components exceed 50% of total remuneration,
the excess amount shall be deemed as wages and added back for statutory
computation under EPF, ESIC, Bonus and Gratuity.
This definition is the statutory foundation for PF wage determination and
is actively enforced during EPFO inspections.
Code on Wages, 2019 – Official PDF
- Incorrect wage splitting attracts PF demands
- Allowances paid uniformly are treated as wages
- EPFO inspections focus on Basic–Allowance ratio
- Backdated liability can run into lakhs
- 35+ years of labour law compliance experience
- PF inspections, audits & demand handling experts
- Legally compliant wage structuring advisory
- Complete EPFO liaison & representation
This Provident Fund (PF) calculator is provided for informational and educational purposes only.
The calculations displayed are based on the personal and professional understanding of the
Employees’ Provident Funds & Miscellaneous Provisions Act, 1952,
the Code on Wages, 2019, judicial interpretations, and prevailing compliance practices.
This calculator does NOT constitute an official interpretation, clarification, notification,
or circular issued by the Employees’ Provident Fund Organisation (EPFO),
the Central Government, or any statutory authority.
Actual PF applicability, wage determination, contribution liability, and compliance requirements
may vary based on:
- Nature of employment and appointment terms
- Wage structure and allowance uniformity
- Establishment-specific EPFO coverage conditions
- Inspection observations and departmental interpretations
- Subsequent amendments, notifications, or court judgments
Gupta Mertia Associates shall not be held responsible or liable for any
loss, demand, penalty, litigation, or adverse action arising from the use of this calculator
or reliance on its output.
Users are strongly advised to seek professional consultation or
verify calculations with the concerned statutory authority
before taking any compliance, financial, or legal decision.
Use of this calculator implies acceptance of the above disclaimer.
