Wages

All remuneration capable of being expressed in terms of money, payable to a person employed in respect of his employment or work done.

• Bonus payable under any law
• Value of house accommodation, supply of light, water, medical attendance, or other amenity excluded by government order
• Employer's PF or pension contribution
• Conveyance allowance or value of travelling concession
• Sum paid to defray special expenses
• House rent allowance
• Remuneration payable under any award or settlement
• Overtime allowance
• Commission payable to employee
• Gratuity on termination
• Retrenchment compensation

• If exclusions exceed 50% of total remuneration, the excess amount is added back to wages. Gratuity & Retrenchment compensation are not to be included while calculating the exclusion.

Note: This 50% rule is critical - it prevents employers from structuring compensation to minimize wage-linked obligations

Employee

Any person employed on wages by an establishment to do any skilled, semi-skilled, unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work.

• Apprentices engaged under the Apprentices Act, 1961

Note: Unlike the old laws, there is no wage ceiling for coverage under the Code on Wages