The Regional Provident Fund ... vs Vivekananda Vidyamandir

The Supreme Court addressed the interpretation of 'basic wages' under Section 2(b)(ii) and Section 6 of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, specifically regarding whether special allowances should be included for Provident Fund deductions. The Court held that special allowances, unless linked to the consumer price index, do not constitute basic wages and are therefore not liable for Provident Fund deductions. The appeals were disposed of with the ruling that the inclusion of such allowances in basic wages is contingent upon their nature and linkage to dearness allowance.