B. Earning Components | 4. Special Allowance
Special Allowance is a component of the salary structure that may be mandated by the State Government, and its treatment varies based on regional wage regulations.
🏛️ Who Decides Special Allowance?
- The State Government has authority to notify Special Allowance under its wage laws.
- Usually included as part of the Minimum Wages framework.
- Maharashtra is currently the only state mandating Special Allowance to employees.
- The amount is revised annually and published by the state.
📌 PF (Provident Fund) Applicability:
If Special Allowance is mandatory under state rules, it is subject to PF contributions just like Basic Salary.
- Applies to both employer and employee contributions
- Relevant when part of minimum wages or statutory wage components
✅ Summary:
- State-regulated and varies across India
- Mandatory only in Maharashtra (revised annually)
- Attracts PF if mandated by state wage law
- Ensures compliance with wage norms and statutory benefits
Please do not enter any spam link in comment box. Thank you!