What is considered basic wages under EPF regulations?

Under EPF regulations, basic wages are defined as the fundamental components of an employee's compensation that are eligible for contributions to the Employees' Provident Fund (EPF). The correct choice reflects this definition, which includes the basic salary and dearness allowance, if applicable.

The inclusion of the dearness allowance is significant because it compensates for the cost of living adjustments and inflation, ensuring that the wages maintain their purchasing power. Basic salary alone does not fully account for cost-of-living increases, which is why the dearness allowance is taken into consideration for EPF contributions.

Options that suggest including components like house rent allowance or overtime pay do not align with the defined structure of basic wages under EPF, as they fall outside the scope of what is considered basic for EPF calculations. The focus is primarily on the basic salary and any additional allowances that are a direct response to economic conditions, such as the dearness allowance.