MANIPAL ACADEMY OF HIGHER EDUCATION vs PROVIDENT FUND COMMISSIONER

The Supreme Court addressed whether the amount received from encashing earned leave constitutes 'basic wages' under Section 2(b) of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. The Court held that the encashed leave amount is not part of 'basic wages', affirming the decision of the Karnataka High Court which followed the Bombay High Court's precedent in Hindustan Lever Employees’ Union v. Regional Provident Fund Commissioner. The ruling clarifies the interpretation of 'basic wages' and the employer's contribution obligations under the Act.