- The definitions of wages vary from labour legislation to labour legislation.
- As per the Minimum Wages Act, 1948, ‘Wages’ means all remuneration, capable of being expressed in terms of money, which would, if the terms of employment/employment agreement were fulfilled, become payable to a person employed in the establishment concerned. It will include HRA but will not include –
(i) The value of –
(a) Any house accommodation, supply of light, water, medical attendance; or
(b) Any other amenity or any service excluded by general or special order of the appropriate Government;
(ii) Any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance;
(iii) Any traveling allowance or the value of any traveling concession;
(iv) Any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
(v) Any gratuity payable on discharge.
- As per the Industrial Disputes Act, 1947 Wages’ means all remuneration, capable of being expressed in terms of money, which would, if the terms of employment/employment agreement were fulfilled, become payable to a Workman employed in the establishment concerned. It will include-
(i) Such allowances (including DA) as the workman for the time being is entitled to;
(ii) The value of any house accommodation, or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles;
(iii) Any travelling concession;
(iv) Any commission payable on the promotion of sales or business or both
But shall not include –
(a) Any bonus;
(b) Any contribution paid by employer to any pension fund or PF or for the benefit of the workman;
(c) Any gratuity payable on the termination of his services;
- As per the Payment of Wages Act, 1936, “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, and includes–
(a) any remuneration payable under any award or settlement between the parties or order of a Court;
(b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period;
(c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name);
(d) 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;
(e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force but does not include—
(1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a Court;
(2) 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;
(3) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;
(4) any travelling allowance or the value of any travelling concession;
(5) any sum paid to the employed person to defray special expenses entailed on him by the
nature of his employment; or
(6) any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d).
- As per the Bombay Industrial Relations Act, 1946 “Wages” means remuneration of all kinds, capable of being expressed in terms of money and payable to an employee with respect to his employment and work done in such employment and includes –
(i) Any bonus, allowances (including dearness allowances), reward or additional remuneration;
(ii) The value of any house accommodation, light, water, medical attendance or other amenity or service
(iii) Any contribution by the employer to any pension of PF;
(iv) Any traveling allowance or the value of any traveling concession;
(v) Any sum paid or payable to or on behalf of an employee to defray special expenses entailed on him by the nature of his employment;
(vi) Gratuity payable, if any.
- ‘Wages’ in The Contract Labour (Regulation & Abolition) Act and Bombay Shops & Establishments Act and Payment of Wages Act, 1948 shall mean wages as defined in Payment of wages Act, 1936.
- ‘Wages’ as per Industrial Employment (Standing Order) Act, 1946 shall mean wages as defined under the Industrial Disputes Act, 1947.
- As per Section 3 of the Minimum Wages Act, 1948, minimum wages are the minimum rates of wages fixed by the Appropriate Government for different classes of workers employed in an employment specified in the Schedule under the Act. The wages paid by an employer cannot be lower than these fixed rates.