PF = 12% of basic + DA. IF the special allowance given to employees either variable or linked to any incentive for production than No otherwise yes.

Not mandatory to deduct PF if salary is more than 15000

If the Special Allowance is not linked to any short time scheme introduced to boost up the production or work or incentive for work then it should not be included for the purpose of the deduction for PF otherwise clubbed it.

The test of universality (i.e. allowances paid to all employees/all employees in a particular category, etc.) and whether the allowance paid in question is linked to specific/additional performance, become the guiding principles for all establishment. As far as the aspect of 15000 is concerned employees cannot be made to contribute more than 15000/- as directed by SC in Marathwada Gramin Bank judgement[AIR 3567 SC (2011)

Yes for these employees also special allowances will be clubbed under basic pay for the purpose of provident fund. 

"The wage structure and the components of salary have been examined on facts, both by the authority and the appellate authority under the Act, who have arrived at a factual conclusion that the allowances in question (special allowance) were essentially a part of the basic wage, camouflaged as part of an allowance, so as to avoid deduction and contribution accordingly to the provident fund account of the employees. There is no occasion for us to interfere with the concurrent conclusions of facts" the apex court said in its verdict. 

Regards 

the Supreme Court ruled that all allowances, such as special allowance and dearness allowance, should be included while computing EPF deduction.

2) Only allowances that are variable and linked to the employee’s efforts, such as overtime allowance, can be excluded, the court said.

3) The court ruled that allowances which are paid to all employees and are not variable or linked to any production incentive should not be excluded. Such allowances should be counted in the salary limit for PF deduction.

4) employees earning more than ₹15,000 in basic wages plus dearness allowance will not be affected.

Calculation of the EPF amount involves the following steps: Identify your EPF contribution - This amount usually appears on your payslip as 'PF deduction'. It will be either 12% of (Basic Salary + Dearness Allowance, if applicable) or 12% of Rs.15,000 i.e., Rs.1,800..

For the PF deduction, the maximum limit of salary of the employee is Rs 15,000 per month. This means that even if the employee's salary is above Rs 15,000, the employer is liable to contribute only on Rs 15,000 that is Rs 1,800. ... The PF is divided into EPF and EPS (Employee pension Scheme) contributions..

The Supreme Court has clarified that only allowances of the following nature can be excluded from 'basic wages' for calculation of Provident Fund contributions. 

a. Allowances which are variable in nature; or
b. Allowances which are linked to any incentive for production resulting in greater output by an employee; or
c. Allowances which are not paid across the board to all employees in a particular category; or
d. Allowance which are paid especially to those who avail the opportunity
The ruling is important as many employers calculate Provident Fund contributions on basic salary only, so this ruling may have significant impact for such employers.

Dear Sir,

All employees who are getting salary (Basic + DA) not more than Rs 6500 employed in an establishment employing 20 employees and covered by EPF Act are required to be covered by the EPF. It is mandatory. The employer cannot exempt any employee. However, if an employee at the time of joining or at the time the EPF is made enforced to the company, is drawing salary more than Rs 6500, he can be excluded from coverage. There is no particular form for getting out of coverage but the registration form itself gives details of salary.