Wages under the Payment of Wages Act, 1936

The term used in the Act is "Wages" (rather than "wager," which usually refers to a bet). Under Section 2(vi), "Wages" means all remuneration capable of being expressed in terms of money which would be payable to a person employed in respect of his employment.
  • Includes: Any remuneration payable under an award/settlement, overtime work, holiday pay, and any sum payable upon termination.

  • Excludes: The value of house accommodation (electricity/water), pension/provident fund contributions, travelling allowance, and gratuity payable on discharge.

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