vipul parmar
(n/a)
30 January 2008
Wage for purpose of ESI Act - ΓÇÿWagesΓÇÖ means all remuneration paid or payable in cash to employee according to terms of contract of employment and includes any payment made to an employee in respect of period of authorised leave, lock-out, lay-off, strike which is not illegal and other additional remuneration paid at interval not exceeding two months. It does not include *contribution paid by employer to any pension fund or provident fund *Travelling allowance * Reimbursement of expenses made by nature of employment of the employee * gratuity. [section 2(22)].
Thus, wages include basic pay, dearness allowance, city compensatory allowance, payment of day of rest, overtime wages, house rent allowance, incentive allowance, attendance bonus, meal allowance and incentive bonus. However, wages do not include annual bonus, unilateral rewards scheme (inam), ex gratia payments made every quarter or every year travelling allowance, retrenchment compensation, encashment of leave and gratuity.
