Bombay High Court, in Maharashtra State Cooperative Cotton Growers’ Marketing Federation Ltd. vs. Appellate Tribunal, Employees Provident Fund, W.P. No. 1268 of 2011, addressed the scope of “basic wages” under the EPF Act. The case arose from the employer’s contention that retention allowance paid to seasonal workers should not be considered for contribution purposes. The Court, however, observed that retention allowance, intended to ensure workers return in subsequent seasons, demonstrated an employment continuity expectation. Placing reliance on the Supreme Court’s decision in Managing Director, Chalthan Vibhag Sahakari Khand Udyog vs. Government Labour Officer, [1981 2 SCC 147], wherein it held that payments made even during non-working seasons must be treated as part of basic wages, making them subject to EPF contributions.
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