The question of wage restructuring, particularly in the context of section 124 of the Code on Social Security, was earlier examined in a broader context in an article by this author published in the March 2026 issue of Business Manager. In that article, it was discussed that section 124 does not create a blanket prohibition against wage restructuring. What it prohibits is the reduction of wages or the reduction of the total quantum of benefits by reason only of the employer’s liability to pay contribution under the Code.
However, the specific question of provident fund still appears to leave room for further enquiry, particularly because doubts continue to arise on how PF contribution should be treated when wages are restructured. This enquiry has now become more relevant in view of the Employees’ Provident Funds Scheme, 2026, which has come into force with effect from 29 June 2026, thereby superseding the earlier EPF Scheme, 1952, except as to things done or omitted before such supersession. The present article, therefore, seeks to examine this limited aspect...
