Case Law Analysis
|Delhi High Court
Payments to External Agencies Not ‘Basic Wages’ Under Sec 2(b) EPFMP Act | Contractor Charges Excluded from PF Liability : Delhi HC
The Delhi High Court affirmed that payments made to outside agencies for dealing, dyeing and fabrication do not qualify as basic wages for provident fund purposes. Consequently, employers cannot be compelled to treat such contractor payments as PF wages, impacting firms that outsource these operations.