The Union government will on Thursday come out with a clarification following a confusion created by a November 30 circular of the Employees’ Provident Fund Organisation (EPFO) on fixing the provident fund contribution while calculating employees’ basic wages.

Informed sources said the circular was nothing new and it only reiterated the provisions of Section 2 of the EPF Act. It stated that all allowances, except a few, should be taken into account for calculating the wages and from that the PF contribution of the employer had to be arrived at.