Define the term ‘Wages’ under ‘The Payment of Wages Act 1936’. What is included and what is not included in this term?
Wages [Section 2 (vi)]:
Wages means all remuneration (whether by way of salary, allowances, or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment.
What is included in Wages ? It includes :
Any remuneration payable under any award or settlement between the parties or order of a court.
Any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period.
Any additional remuneration payable under the terms of the employment (whether called a bonus or by any other name).
Any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made.
Any sum to which the person employed is entitled under any scheme framed under any law for the time being in force.
The term ‘Wages’ does not include –
Any bonus (whether under a scheme of profit-sharing or otherwise) which does not form part of the remuneration payable under the terms of the employment or which is not payable under any award or settlement between the parties or order of a court.
The value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the State Government.
Any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued on it.
Any travelling allowance or the value of any travelling concession.
Any sum paid to the employed person to pay special expenses entailed on him by the nature of his employment, or
Any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d) (Section 2 (vi)).