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Wages & Contribution |
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The term ‘Wages’ has been defined as:
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All remuneration paid or payable in cash to an employee‚ if the terms of the contract of employment express |
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or implied‚ was fulfiled. |
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And includes any payment to an employee in respect of any period of authorised leave‚ lockout‚ strike which |
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which is not illegal or lay off. |
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And other additional remuneration‚ if any‚paid at intervals not exceeding two months. |
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But does not include |
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(a) |
Any contribution paid by the employer to any pension fund or provident fund‚ or under ESI Act. |
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(b) |
The value of any travelling concession.(only reimbursement) |
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(c) |
Any sum paid to the person employed to defray special expenses entailed by him by the nature of his employment or |
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(d) |
Any gratuity payable on discharge. |
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It can be seen from the above definition‚ of wages: |
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(a) |
The remuneration must be in cash and not in kind. |
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(b) |
It need not necessarily be paid. It is sufficient that it is payable. An employee may leave the employment without receiving his wages. Though the salary is not actually paid to him‚ contribution is due on it‚ as the salary is payable to him. |
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(c) |
There is no periodicity or duration. Salary paid once in a qurter or annually is also wages. |
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The remuneration must be in terms of contract of employment. It may be oral or written. Thus an offer of |
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appointment specifying the nature and quantum of wages admissible to an employee‚ or an agreement between the employer and employees’ Union/Association whether orally agreed to or reduced in writing can be termed as contract of employment. The standard rules of the company regulating the pay structure and the fringe benefits binding on the employees is also contract of the employment. Normally the following items come under the category: |
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...more |
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