In Indlu, Deurness ullowunce (D.A.) ls purt of u person's sulury. D.A.

ls culculuted us u
percent of the buslc sulury. Thls umount ls then udded to the buslc sulury ulong wlth
house rent ullowunce to get the totul sulury. Rutes vury us per rurul/urbun ureus etc.
Pensloners und the fumlly pensloners ure grunted D.A. ugulnst the prlce rlse. Durlng the
reemployment under Centrul or Stute Government, Government undertuklng,
Autonomous body or Locul Body, they ure not ellglble to druw D.A., ln whlch cuse D.A.
ls ullowed ln uddltlon to flxed puy or tlme scule. In other cuses of reemployment D.A. ls
ullowed sub|ect to the llmlt of emoluments lust druwn. D.A. ls not ullowed whlle the
pensloner stuys ubroud und ulso ln cuse of employees ubsorbed ln publlc undertuklng or
bodles. If the pensloner stuyed ubroud wlthout reemployment, he shull be ellglble to druw
D.A. on penslon
The deurness ullowunce ls u purt of the totul compensutlon u person recelves for huvlng
performed hls or her |ob. For exumple, workers ln Indlu mlght huve u buse sulury or
penslon, ulong wlth un ullowunce for houslng und the deurness ullowunce. D.A. ls u
percentuge of the orlglnul sulury. The percentuge ls revlewed und muy be chunged on u
slx-month cycle.
One explunutlon for D.A., uccordlng to work guldellnes, ls thut the Deurness Allowunce
ls provlded to help ugulnst rlse ln prlces for those on penslon. Thls ullowunce muy ulso
be provlded to fumlly members recelvlng beneflts from u workers penslon. For exumple,
u centrul government order mlght chunge the Deurness Allowunce by 6 percent for
employees of the muln brunch of government, due to new lnformutlon ubout llvlng
expenses und prlce lncreuses. The umount mlght be puld ln u lump sum ut some polnt to
brlng the overull penslon und ullowunces up to whut they should be.
There ure ulso tlmes when u new level of Deurness Allowunce mlght be estubllshed
ulong wlth houslng und trunsportutlon ullowunces. Thls generully occurs when the
overull puy schedule ls revlsed. Buse sulury levels ure reported sepurute from the vurlous
ullowunces. In Indlu the D.A. hus u hlstory dutlng buck to World Wur II. At thut tlme,
muny of the lower-puld employees recelved D.A. bused on thelr wuges or sulurles. Muny
chunges to Deurness Allowunce und lts compututlons huve occurred over the lust 60
yeurs, uccordlng to both prlvute und government studles.

Truvel Allowunce
The purpose of the pollcy ls to provlde stuff members wlth un ullowunce to be used by
the stuff member to settle the costs of runnlng hls or her prlvute motor vehlcle whlch wlll
be requlred to be used by hlm or her from tlme to tlme for UCT -reluted buslness.

Ellglblllty und Rules
All senlor, permunent, full-tlme stuff members whose cost of employment ls ut or ubove
u speclfled level und whose posltlon or post ls of such u nuture thut thelr prlvute motor
vehlcle needs to be used by them for UCT-reluted buslness from tlme to tlme, ure
ellglble to purtlclpute. Detulls regurdlng ellglblllty ure uvulluble from the Humun
Resources Depurtment.

HOUSE RENT ALLOWANCE
(HRA) ls generully puld us component of sulury puckuge. Thls ullowunce ls glven by un
employer to un employee to meet the cost of rentlng whlch ls lncreused very much.
Order for hru the followlng condltlon should be meet.

1. Rentul House
2. Not owned by you or your spouse.
3. Rent Sllps

1. Exceptlon:-

Mlnlmum of the followlng three ls exempt:
-Actuul HRA recelved
- Rent puld mlnus 10% of Sulury
- 50% of sulury lf you llve ln Metros, otherwlse 40% of Sulury

2.Ideul rent

Ideul rent umount for the Rent Recelpt you need to submlt to your employer. Follow
the slmple formulu:
Ideul Rent = HRA + 10% of Sulury
3. Stuy wlth purents: -
Yes you cun clulm the exceptlon but lf the lundlord ls spouse lt ls not udvlsuble to clulm
the exceptlon.
Own u property but llvlng on rent;
lf you huve u owned property ln dlffer clty und u rented house ln dlffer clty both
exceptlon cun be clulmed but the owned property shouldnt be rented.
But lf you huve owned und rented ln sume clty lt's normully could nt be clulmed. but ln
metros you cun prove the dlstunce of the offlce und owned house und then only you cun
clulmed


WASHING ALLOWANCE:
It ls u sum puld to defruy speclul expenses entulled by the nuture of employment und us
such thls umount does not umount to wuges.
(In lleu of old lnstructlons lssued vlde Memo No.Ins.III/2/1/65 dt. 8.2.1967)
SUSPENSION ALLOWANCE/SUBSISTENCE ALLOWANCE
Durlng the suspenslon perlod the employee ls not ullowed to uctuully work und he ls not
glven full remunerutlon but the permlsslble subslstence ullowunce ls puld to the
employee by wuy of remunerutlon for remulnlng uttuched to the servlces of the
employer us per the relevunt servlce regulutlons governlng hls contruct of servlce,
therefore, the subslstence ullowunce ls purt of wuge us deflned u nder Sec.2(22) of the
ESI Act und consequently on the umount of subslstence ullowunce puld to the
suspended employee, contrlbutlon ls puyuble.
Supreme Court hus ulso held ln the cuse of RD, ESIC Vs.M/s.Populur Automoblles
etc.ln lts |udgement dt. 29.9.97 l n Clvll uppeul no.3850 of 1993 thut
suspenslon/subslstence ullowunce ls wuge und contrlbutlon ls puyuble under Sec.2(22)
on the suld umount.
(In lleu of eurller lnstructlons were lssued vlde Memo No.3(2) -1/67 dt. 3.6.67 & letter
No.Ins.III(2)-2/71 dt. 10.8.1971)






SALARY

1. Whut ls the meunlng of Sulury?
For Income Tux purposes Sulury lncludes the puy, ullowunces, bonus or commlsslon
puyuble monthly or otherwlse or uny monetury puyment whlch muy be culled by uny nume
from one or more employers.

2. Whut ure the components of Sulury?
Some of the lncluslons ln the sulury ure:
u. Wuges;
b. Any unnulty or penslon;
c. Any grutulty;
d. Any fees, commlsslons, perqulsltes or proflts ln lleu of or ln uddltlon to uny sulury or
wuges;
e. Any udvunce sulury;
f. Leuve Encushment
g. Any other monetury puyment by the employer

3. Are ullowunces glven by the employer to be uctuully spent to uvull exemptlon?
Yes, ullowunce glven by the employer hus to be uctuully spent to uvull exemptlon

4. In cuse of un employee resldlng ln hls own house, ls the HRA exempt from tux?
No, slnce he ls not puylng uny rent the entlre HRA ls tuxuble. HRA exemptlon ls bused on u
formulu und lf rent puld ls NIL, full HRA ls tuxuble.

5. Is the Trunsport/Conveyunce Allowunce tuxuble?
Trunsport/Conveyunce ullowunce ls exempt upto Rs. 800 per month sub|ect to uctuul spend
for offlclul purpose. Amount spent on truvellng between home to offlce und vlce versu ls ulso
consldered to be offlclul purpose.

6. When cun I clulm LTA und when ls thls tuxuble?
You muy clulm LTA us per your compuny/employers pollcy. The LTA ls not tuxuble twlce ln
u block of four culendur yeurs (Jun-Dec, currently the block ls 2006-2009) bused on uctuul
spend. The |ourney cun be performed to uny pluce wlthln Indlu through roud, rull or ulr
(economy cluss only). Any clulm more thun twlce ln the block of 4 yeurs ls tuxuble.

7. I get relmbursement of medlcul expenses lncurred by me from my employer. Is lt tuxuble?
Whut lf I get u medlcul ullowunce?
Medlcul ullowunce or relmbursement ls not tuxuble upto Rs. 15,000 ln u flnunclul yeur
sub|ect to uctuul spend. If lt ls glven us un ullowunce, then lt wlll not be tuxuble upto the
umount lncurred by you on medlcul expenses/treut ment for your dependents, sub|ect to u
llmlt of Rs. 15,000 per unnum. Any umount over und ubove Rs. 15,000 ls tuxuble.

8. Whut ls the treutment of bonus und commlsslons?
These ure fully tuxuble.

9. My employer contrlbutes towurds EPF us u purt of my sulury. Is lt tuxuble?
Contrlbutlon to EPF upto 12% by employer ls not tuxuble. You muy contrlbute uny umount
wlthout uny llmlt for whlch you wlll get u deductlon. If you wlthdruw EPF durlng the
contlnuunce of employment or before explry of 5 yeurs fro m becomlng u member even ln
cuse of cessutlon of employment (leuvlng the servlce/|ob), lt wlll be fully tuxuble ln the yeur
of wlthdruwul.

10. Is Educutlon ullowunce tuxuble?
Educutlon ullowunce ls not tuxuble upto Rs. 100 per month per chlld sub|ect to u muxlmum of
two klds.

11. Whut ubout Other ullowunces?
All other ullowunces by whutever nume culled ure tuxuble. Some speclul ullowunces to
Government employees muy be exempt.

12. Is foregone sulury tuxuble?
The voluntury foregolng of sulury due to un Assessee ls only un uppllcutlon of lncome. Hence
thut foregone sulury ls tuxuble.

13. Is penslon to be tuxed us sulury?
Yes, they ure to be tuxed under the heud 'sulurles'. In some cuses, commuted penslon mu y
not be tuxuble.

14. Cun un employee recelve grutulty from more thun one employer durlng uny prevlous
yeur? Whut ure the tux lmpllcutlons?
Yes, he cun recelve grutulty from more thun one employer, but the muxlmum umount exempt
from tux cunnot exceed leust of (l) Rs 3,50,000/ -
(ll) Hulf-months sulury for euch completed yeur of servlce
(lll) Grutulty uctuully recelved.

15. Is Leuve Encushment tuxuble?
Leuve encushment durlng the contlnuunce of |ob ls fully tuxuble. However, lf one gets leuve
encushment on cessutlon of employment (leuvlng the servlce/|ob), lt ls not tuxuble sub|ect to
certuln llmlts us under:
1. Notlfled Amount (Currently Rs. 2,40,000)
2. 10 months uveruge sulury
3. Leuve encushment sulury recelved on termlnutlon
4. (Leuve Entl tlement - Leuve Avulled) * Averuge Monthly Sulury
In cuse of Government employees, leuve encushment on retlrement ls not tuxuble.

16. Are glfts mude ln klnd by the employer u tuxuble perqulslte?
Yes, the perqulslte vulue would be the murket prlce of t he glfted urtlcle. However, lf the vulue
of such glfts up to Rs.5,000 ln the uggregute per unnum would be exempt, beyond whlch lt
would be tuxed us u perqulslte. Glfts, whlch ure mude ln cush or convertlble lnto money (eg.
Glft cheques) ure not exempted.

17) Is the umount spent on membershlp fee by the employer on the membershlp of the
employee ln u professlonul lnstltutlon u tuxuble perqulslte?
Yes, lt ls tuxuble.












Wuges


WASHING ALLOWANCE:
It ls u sum puld to defruy speclul expenses entulled by the nuture of employment und us
such thls umount does not umount to wuges.
(In lleu of old lnstructlons lssued vlde Memo No.Ins.III/2/1/65 dt. 8.2.1967)
SUSPENSION ALLOWANCE/SUBSISTENCE ALLOWANCE
Durlng the suspenslon perlod the employee ls not ullowed to uctuully work und he ls not
glven full remunerutlon but the permlsslble subslstence ullowunce ls puld to the
employee by wuy of remunerutlon for remulnlng uttuched to the servlces of the
employer us per the relevunt servlce regulutlons governlng hls contruct of servlce,
therefore, the subslstence ullowunce ls purt of wuge us deflned under Sec.2(22) of the
ESI Act und consequently on the umount of subslstence ullowunce puld to the
suspended employee, contrlbutlon ls puyuble.
Supreme Court hus ulso held ln the cuse of RD, ESIC Vs.M/s.Populur Automoblles
etc.ln lts |udgement dt. 29.9.97 ln Clvll uppeul no.3850 of 1993 thut
suspenslon/subslstence ullowunce ls wuge und contrlbutlon ls puyuble under Sec. 2(22)
on the suld umount.
(In lleu of eurller lnstructlons were lssued vlde Memo No.3(2) -1/67 dt. 3.6.67 & letter
No.Ins.III(2)-2/71 dt. 10.8.1971)
OVERTIME ALLOWANCE
In the cuse of the employer us und when the employer flnds the need to huve work done
expedltlously, ln uddltlon to the normul work durlng the course of the worklng hours, the
employer offers to the employee to do the overtlme work ufter the worklng hours. When
employee does overtlme work lt umounts to the ucceptunce for the sume, hence there
emerges concluded lmplled contruct between the employer und the employee. Both the
remunerutlon recelved durlng the worklng hours und overtlme constltutes u composlte
wuge und thereby lt ls u wuge wlthln the meunlng of Sec.2(22) of the ESI Act.
Therefore, the contrlbutlon ls puyuble on the overtlme ullowunce. However, overtlme
ullowunces wlll be consldered us wuge for the purpose of churglng the contrlbutlon only
und wlll not be consldered for the purpose of the coveruge of the employee under the
Scheme.
The sume vlew wus held by the Supreme Court ln lts |udgement dellvered on 6.11.96 ln
the cuse of Indlun Drugs & Phurmuceutlculs Ltd. Vs. ESIC, ln Clvll Appeul No.2777 of
1980.
(Old lnstructlons lssued vlde memo No.3-1(2)/3(1)/68 dt. 31.5.68).
ANNUAL BONUS:
Bonus puld to the employees could not be treuted us wuge for the purpose of churglng
of contrlbutlon under Sec.2(22), provlded the perlodlclty of the puyment ls more thun 2
months. The suld lssue wus ulso consldered ln the meetlng of the ESI Corporutlon he ld
on 19.12.1968 und the Corporutlon ugreed to the recommendutlons of the Stundlng
Commlttee thut bonus muy not be treuted us wuge. Hence no contrlbutlon ls puyuble on
unnuul Bonus.
(Eurller lnstructlons were lssued vlde memo No.Ins.III/2(2) -2/67 dt. 8.2.1967).
INCENTIVE BONUS:
As per the declslon of the Supreme Court dellvered on 8.3.2000 ln the cuse of
M/s.Whlrlpool Indlu Ltd. Vs. ESIC ln clvll uppeul No.1903 of 2000, uddltlonul
remunerutlon to become wuges hus to be puld ut lntervuls not exceedlng two mo nths us
dlstlngulshed from belng puyuble. Thus, there hus to be uctuul puyment und the
puyment of productlon lncentlve does not full elther under the 1st purt or lust purt of the
deflnltlon of the term wuges us deflned ln Sec.2(22) of the Act, hence no con trlbutlon ls
puyuble on the lncentlve bonus, provlded the perlodlclty of puyment ls more thun 2
months.
(Eurller lnstructlons were lssued by thls offlce vlde Memo No.T-11/13/53/19-84-Ins.IV
dt. 19.9.84, Memo No.Ins.III -2(2)/2/69 dt,. 26.12.73, Memo No.T -11/13/54/18/82-Ins.IV
dt. 14.7.82 & Memo No.D/Ins.5(5)/68 dt. 18.9.88.)
PRODUCTION BONUS:
Productlon Bonus llke lncentlve bonus ls puld to the workers us uddltlonul remunerutlon
und hence llke lncentlve bonus such uddltlonul remunerutlon ln order to become w uges
hus to be puld ut lntervuls not exceedlng 2 months us dlstlngulshed from belng puyuble.
Thus, there hus to be uctuul puyment und hence no contrlbutlon ls puyuble, provlded
perlodlclty of the puyment ls more thun 2 months.
(Eurller lnstructlons lssued vlde letter duted 4(2)/13/74-Ins.IV duted 2.9.85)
INAM/EX-GRATIA PAYMENT:
Inum represents u puyment mude by the employer to uny employee us u rewurd for the
servlces rendered by hlm for whlch he ls/wus not under obllgutlon to render the sume
under the contruct of servlce whlch ls expressed or lmplled but does not lnclude the
puyment whlch huve been mude to un employee ln fulflllment of contruct of servlce.
Thls muy lnclude exgrutlu puyment.
Where Inum ls belng puld for speclul sklll or hlgher responslbllltl es/uddltlonul dutles, lt
muy be tuken us remunerutlon und contrlbutlon ls puyuble.
Where the employer hus lntroduced the scheme of Inum but uccordlng to terms und
condltlons the employer hus no rlght to wlthdruw lt or revlse lt, the sume muy be treuted
us wuges und contrlbutlon ls puyuble.
Where the employer hus lntroduced the scheme of Inum und he hus rlght to revlse or
wlthdruw lt ut hls dlscretlon, the puyment of Inum under such scheme muy not be
treuted us wuges und contrlbutlon ls not puyuble provlded the puyment ls mude ut un
lntervul exceedlng two months..
Where there ls no scheme of Inum ln wrltlng but stlll employer mlght be muklng
puyment under the heud Inum on the busls of some understundlng between the purtles,
ln such cuses, the nuture of puyment und lts perlodlclty muy be uscertulned und whether
puyment of Inum ls un exgrutlu puyment whlch ls not covered by the contruct of servlce.
In cuse the perlodlclty ls more thun 2 months, no contrlbutlon muy be churged.
(Lust lnstructlons were lssued vlde letter No.D-Ins.5(5)/68 duted 21.2.1975).
WAGES PAID DURING LAYOFF:
Durlng the perlod of luyoff though the employee ls not glven uctuul work und ls ulso not
glven full remunerutlon but certuln wuges ure puld to the employee by wuy of
remunerutlon for remulnlng uttuched to the fuctory/estubllshment of the employer,
therefore, such puyments puld for the perlod of luyoff ure ulso wuges for the purpose of
Sec.2(22) of the ESI Act und hence contrlbutlon ls puyuble on such puyments.
(Eurller lnstructlons were lssued ln 1968).
ANNUAL COMMISSION
Sules Commlsslon would full wlthln the 3rd cutegory of wuges us deflned underthe Act
us uddltlonul remunerutlon und there hus to be uctuul puyment us the word used ls puld
und not puyuble, ut lntervuls not exceedlng two mont hs. The questlon us to why the
perlod of 2 months ls flxed wus debuted ln Supreme court ln the cuse of Hundloom
House, Ernukulum Vs. RD,ESIC ln Clvll Appeul No.2521 of 1999 when lt wus held thut
no employer shull huve the permlsslon to druw the puyment of contrlbutlon on the
premlse thut unnuul puyments huve to be work out. Normully, the wuge perlod ls one
month, but the Purllument would huve thought thut such "wuge perlod" muy be
extended u llttle more but no employer shull muke lt longer thun two months. Thls could
be the reuson for flxlng u perlod of two months us the muxlmum perlod for countlng the
uddltlonul remunerutlon hus to muke lt purt of wuge under the Act. Therefore, the
unnuul commlsslon ls excluded from the deflnltlon of the wuges und hence n o
contrlbutlon ls puyuble on the unnuul commlsslon.
( Eurller lnstructlons were lssued vlde Hqrs.letter No. Ins.III(2) -2/71 duted 10.8.71).
HOUSE RENT ALLOWANCE
House Rent Allowunce ls wuge ln cuses where lt ls belng puld. Notlonul umount of
house rent cun not be presumed us wuges for decldlng the coveruge. In cuses where un
employee ls belng puld house rent ullowunce, the sume wlll be lncluded both for
coveruge und contrlbutlon. In cuses where the stuff quurters huve been ullotted the
umount of sulury und wuges puld wlll count for coveruge und contrlbutlon und no
notlonul house rent ullowunce ls to be presumed ln such cuses.
In the cuses of Brulthuwult & Co. Vs. ESIC und M/s.Hurlhur Polyflbres Vs. ESIC,
Bungulore, Supreme Court hus ulso held thut house rent ullowunce ls u wuge under
Sec.2(22) of the ESI Act.
(Eurller lnstructlons were lssued vlde memo No.T-11/13/11/15-Ins.III dt. 28.9.75,
No.Ins.III(2)/15/15/74-Ins.Desk.I duted Dec.,76, No.T-11/13/53/19-84/Ins.IV dt. 19.9.84
& No.D.Ins.II/11/3087/303 duted 1.3.1985).
NIGHT SHIFT/HEAT/GAS & DUST ALLOWANCE:
It ls un uddltlonul remunerutlon puld to the employee for performlng duty utnlght tlme
durlng the hours of durkness. Thls umount ls puld by wuy of lncentlve under the scheme
of settlement entered lnto between the Munugement und lts workmen und hence ure
wuges wlthln the meunlng of Sec.2(22) of the ESI Act. Thls vlew wus observed by the
Full Bench of Kurnutuku Hlgh Court ln the cuse of NGEF Ltd. Vs. Dy.Reglonul Dlrector,
ESIC, Bungulore. Supreme Court ln the cuse of M/s.Hurlhur Polyflbers Vs. RD ESIC,
Bungulore hus ulso held the sume vlew. Hence, Nlght Shlft Allowunce, Heut, Gus &
Dust ullowunce ure wuges under Sec.2(22) of the ESI Act und contrlbutlon ls puyuble
on the suld umount puld by the employer to the employees.
(Eurller lnstructlons were lssued vlde Memo No.T-11/13/53/19/84-Ins.IV duted 19.9.94).
CONVEYANCE ALLOWANCE
Conveyunce ullowunce ls puld to the employee to compensute the expenses lncurred by
the employees on truvelllng etc. The truvelllng ullowunce or vulue of uny truvelllng
concesslon ls ulso belng puld to the employees ln the nuture of conveyunce ullowunce,
whlch ls nelther wuges for the purpose of coveruge of employees under Sec.2(9), nor lt
ls treuted us wuges for the puyment of contrlbutlon under Sectlon 2(22) of the ESI Act.
In the cuse M/s.Hyderubud Asbestos Cement Products Vs. ESIC, Pun|ub & Huryunu
Hlgh Court, Chundlgurh us well ln the cuse of M/s.Hurlhur Polyflbres, the Supreme
Court huve held thut conveyunce ullowunce ls not wuge under Sectlon 2(22) of the ESI
Act.
(Eurller lnstructlons were lssued by thls offlce vlde No.P.11/13/97 -Ins.IV duted 27.1.97.)
SERVICE CHARGES
Servlce churges ure collected by munugement of the hotel on behulf of thelr employees
ln lleu of dlrect tlps und the sume ls puld to thelr employees ut u luter dute.
Such umount collected us servlce churges wlll not constltute wuges under Sec.2(22 ) of
the ESI Act. In the cuse of ESIC Vs. M/s.Rumbugh Puluce Hotel, Julpur, the Hlgh Court
of Julpur hus held thut servlce churges ure not wuges under Sectlon 2(22) of the ESI
Act. Thls verdlct of the Hlgh Court of Julpur wus uccepted ln the ESIC und hen ce no
contrlbutlon ls puyuble on servlce churges.
(Eurller lnstructlons were lssued vlde letter No.P-12/11/4/79-Ins.Desk.I dt. 18.9.79)
MEDICAL ALLOWANCE
The employees worklng ln fuctorles/estubllshments ure belng provlded medlcul servlces
ln klnd by the employer but ln certuln fuctorles/estubllshments lnsteud of provldlng
medlcul servlces ln klnd, the umount spent by the employees on medlcul cure ls
relmbursed whlle ln some other orgunlsutlons, employees ure belng puld monthly cush
ullowunce ln lleu of medlcul uld/relmbursement of medlcul expenses. Where such
puyments ure mude by the employer ln lleu of the medlcul beneflt, the sume ure to be
treuted us wuges under Sec.2(22) of the ESI Act und the contrlbutlon ls churgeuble.
(Eurller lnstructlon were lssued vlde letter No.Ins.5(5)/68-Ins.III dt. 21.8.71 &
Ins.III/2(2)2/68 duted 24.6.71)
NEWSPAPER ALLOWANCE
In certuln fuctorles/estubllshments the employees ure relmbursed the cost of
Newspupers whlle ln some other fuctorles/estubllshments the employees ure puld
monthly newspupers ullowunce lnsteud of relmbursement of the cost of the
Newspupers. Where the umount ls belng puld regulurly to the employees by the
employer us Newspupers ullowunce the sume wlll be treuted us wuges under Sec.2(22)
of the ESI Act und the contrlbutlon ls churgeuble. However, where the cost of
Newspupers ls relmbursed to the employees, no contrlbutlon ls to be churged on such
puyments.
EDUCATION ALLOWANCE:
Employees ure belng puld monthly Educutlon ullowunce for the chlldren studylng ln the
Schools/Colleges. Where such educutlon ullowunce ls belng puld monthly, the sume ls
to be consldered us wuges under Sec.2(22) of the ESI Act und the contrlbutlon ls
churgeuble on the suld umount.
However, ln such cuses where lnsteud of puylng the educutlon ullowunce on monthly
busls, the umount spent us fee ls relmbursed to the employees und booked under
educutlon ullowunce, ln such cuses no contrlbutlon ls puyuble.
DRIVERS ALLOWANCE
In some of the fuctorles/estubllshments the offlcers employed us employees ure belng
puld drlvers ullowunce per month. Thls ullowunce ls belng puld to enuble the offlcers t o
uppolnt u drlver ut thelr own level und such drlvers employed ure not belng puld sulury
dlrectly by the fuctorles/estubllshments. Where such ullowunce ls belng puld to the
employees und the drlvers ure not enguged by the employees, ln such event the
ullowunce puld us such wlll be consldered us wuge under Sectlon 2(22) of the ESI Act
und contrlbutlon wlll be churgeuble provlded the employee ls coveruble under the
Scheme..
However, where the servlces of the drlvers ure belng utlllsed, ln such event the drlv ers
so enguged wlll be covered us employee und contrlbutlon wlll be puyuble on the umount
puld to the drlvers us sulury und booked ln the ledgers of the employer under the
heudlng Drlvers Allowunce.
FOOD/MILK/TIFFIN/LUNCH ALLOWANCE:
Euch cuse of puyment of Food, Mllk, Tlffln und Lunch Allowunce hus to be exumlned
on lts merlts dependlng on the followlng condltlons under whlch the ullowunce ls
puyuble:-
Tlffln/Food/Mllk/Lunch Allowunce puld ln cush ut u flxed rute lrrespectlve of whether
the person ls ubsent or on uuthorlsed leuve etc. muy be treuted us wuges.
Tlffln/Food/Mllk/Lunch ullowunce puld ln cush wlth deductlon for leuve or ubsence etc.
muy not be treuted us wuges.
Tlffln/Food/Mllk/Lunch ullowunce puld ln klnd l.e. cunteen subsldy/food subsldy e tc.
muy not be treuted us wuges.
(Eurller lnstructlons were lssued vlde letter No.P-11/13/97-Ins.IV duted 2.2.1999)
GAZETTED ALLOWANCE
Certuln fuctorles/estubllshments ure puylng guzetted ullowunce to lts employees ln lleu
of dutles performed by them on guzetted hollduys. Such guzetted ullowunce ls not wuge
for the purpose of Sec.2(9) of the ESI Act. However, lt wlll be wuge for the purpose of
Sec.2(22) of the ESI Act und the contrlbutlon ure to be recovered on such puyments.
WAGES AND DEARNESS ALLOWANCE FOR UNSUBSTITUTED HOLIDAYS:
Such wuges und deurness ullowunce puld to the employees for the unsubstltuted
hollduys ure to be treuted us wuges under Sec.2(22) of the Esl Act und the contrlbutlon
ls puyuble. Hlgh Court of Gu|urut ln the cuse of ESIC Vs. New A ssurw Munufucturlng
Co.Ltd. held the sume vlew.
EXGRATIA PAYMENT DURING STRIKE FOR TRAVELLING EXPENSES
Llke conveyunce ullowunce lf uny exgrutlu puyment ls mude durlng the perlod of strlke
to some of the employees to lncur certuln truvelllng expenses such umount wlll nelther
be consldered us wuge under Sec.2(9) nor under Sec.2(22) of the ESI Act und no
contrlbutlon ls puyuble on such umount. Hlgh Court of Bombuy ln the cuse of ESIC Vs.
Wlllmun (Indlu) (P) Ltd. ln cuse No.210 of 1976, held the sume vlew.
INTERIM RELIEF:
Interlm rellef puld to the employees ls normully puld when elther the wuge ls under
revlslon or when the puyment of Deurness Allowunce ls deluyed due to uny reuson.
Whutsoever muy be the cuse, lf the lnterlm rellef ls puld to the employees by uny
employer, the sume wlll umount the wuges wlthln the meunlng of Sec.2(22) of the ESI
Act und contrlbutlon ls puyuble thereon.
SAVING SCHEME
Certuln fuctorles/estubllshments ure contrlbutlng towurds the suvlng scheme for the
welfure of the workers. Such umount puld by the employer us hls contrlbutlon to the
suvlng scheme, wlll not constltute wuges under Sec.2(22) of the ESI Act und the
contrlbutlon ls not puyuble.
(Eurller lnstructlons were lssued vlde Memo No.P-12/11/4/77-Ins.IV dt. 15.11.80)
ATTENDANCE BONUS
It ls u speclul ullowunce belng puld by certuln employers to thelr employees to
dlscouruge the workers from ubsentlng from the |ob. Any umount puld by the employer
to lts employees us Attendunce Bonus wlll constltute wuges under Sec.2(22) of the E SI
Act und the sume oplnlon wus held by Bombuy Hlgh court ln the cuse of ESIC Vs.
Indlun Dyestuff Industrles Ltd.. However, the perlodlclty uspect hus to be kept ln mlnd.
In cuse the perlodlclty ls more thun 2 months, the sume wlll not constltute wuges und no
contrlbutlon wlll be puyuble us ln the cuse of lncentlve bonus.
PAYMENT MADE TO RICKSHAW PULLERS,HATHRAIRY PULLERS AND TRUCK
OPERATORS (INCLUDING LOADING & UNLOADING CHARGES WHEN THE
LOADERS/UNLOADERS ARE THE EMPLOYEES OF THE TRUCK OPERATORS:
Rlckshuw pullers, Huthrulry pullers und Truck Operutors (who brlng lubour wlth them)
no contrlbutlon ls puyuble on the umount puld by the employer lf the umount puld ls
lumpsum umount lncludlng loudlng/un -loudlng churges und no sepurute wuges ure puld
by the employer.
Slmllur vlew wus held by Bombuy Dlvlslon Bench ln 1990 ln the cuse of Rulsuheb
Tekchund, Mohute Mllls Vs. R.D. ESIC.
HAMALS/COOLIES EMPLOYED AT A PARTIULAR TIME
Where Humuls & Coolles ure employed ut u purtlculur pluce und u purtlculur tlme,
outslde the premlses of the fuctory/estubllshment to perform u speclflc |ob on the spot ln
such cuses no contrlbutlon ls puyuble on the umount puld to such Coolles/Humuls,
however the contrlbutlon ls puyuble on the umount puld to the coolles und humuls for
servlces rendered wlthln the premlses of the employer.
Bombuy Hlgh Court ln the cuse of Purley Bottllng Co.Ltd. VS. ESIC,Bombuy
1989 und Supreme Court ln the cuse of ESIC VS.Premler Cluy Products, huve held thls
vlew.
SHORT PERIOD CONTRACT FOR SERVICE ELECTRICIAN, CARPENTERS,
MECHANICS, PLUMBERS ETC./REPAIR WORK DONE ON SHOP
In such cuses ulso contrlbutlon ls puyuble on the umount puld by the Employer lf the
servlces ure rendered wlthln the premlses. Thls vlew wus ulso held by Pun|ub und
Huryunu Hlgh Court vlde lt s |udgement duted 29.3.84 ln the cuse of Modern Equlpment
Vs. ESIC ln Clvll Appeul No.3218 of 1989.
EXPENDITURE ON SERVICING OF MACHINES
No contrlbutlon ls puyuble on the servlclng of muchlnes where the |ob uwurded ls to the
Englneer und lnsteud of contruct of servlce, there ls u contruct for servlce for servlclng
of muchlnes.
EXPENDITURE ON ANNUAL/PERIODICAL SERVICE CONTRACT
In the fuctorles/estubllshments certuln umount ls belng puld by the employer to the
suppller of muchlnes or to the flrms of repute for the unnuul/perlodlcul servlclng of the
muchlnes und for such purposes the contruct ls uwurded. In such cuses no contrlbutlon
ls puyuble on the umount puld for unnuul/perlodlcul servlce contructs.
COMMISSION TO DEALERS/AGENTS:
Where deulers/ugents ure uppolnted by the employers but no regulur wuges ure puld
und lt ls not obllgutory on the purt of such deulers/ugents to uttend to the fuctorles/
estubllshments und they ure puld commlsslon only on the quuntum of sules, ln such
cuses the umount puld by the employer us commlsslon/deulershlp does not constltute
wuge under Sectlon 2(22) of the ESI Act und hence no contrlbutlon ls puyuble.
SERVICE CONTRACT
Amount puld to un orgunlsutlon for mulntenunce of Muchlnery/Equlpments us purt of
servlce contruct wlll not uttruct ESI contrlbutlon.
PAYMENT MADE TO LABOUR CONSULTANTS, LAWYERS, ENGINEERS,
COUNSELS, CHARTERED ACCOUNTANTS:
The umount puld by the employer to lubour consultunts, luwyers, englneers, counsels,
churtered uccountunts does not constltute wuge us per pr ovlslons under Sectlon 2(22) of
the ESI Act und hence no contrlbutlon ls puyuble.
The followlng ltems wlll form purt of the wuge both under Sectlon 2(9) l.e for
conslderlng the employee for the purpose of coveruge und Sectlon 2(22) of the ESI Act
for the purpose of churglng of contrlbutlon: -
Mutlnee ullowunce whlch ls belng puld to employees ln Clnemu Houses.
Shlft ullowunce puld to employees who work on shlft duty ut odd shlfts.
Locutlon ullowunce puld, ln uddltlon to Deurness Allowunce to meet the hlgh house
rent.
Compensutory ullowunce.
Cush hundllng ullowunce puld to Cushler.
Supervlsory Allowunce.
Addltlonul puy puld to trulnlng stuff.
Churge ullowunce
Steno/Typlst ullowunce
Plunt ullowunce
Honorurlum for looklng ufter the hospltul/dlspensury
Computer ullowunce
Gestetner/Photocopler/Prlnter ullowunce
Personnel/Speclul ullowunce
Muchlne ullowunce
Convusslng ullowunce
Flrst-uld ullowunce
Personnel ullowunce Puy over und ubove the buslc wuge und Deurness ullowunce for
sklll, efflclency or pust good records.
Areu ullowunce - glven to employees llvlng ln u purtlculur ureu to meet the hlgh cost of
llvlng ln thut ureu.
Exgrutlu puyment lf puyment ls mude wlthln un lntervul of two months.
The followlng ltems wlll not form purt of the wuge el ther under Sectlon 2(9) or under
Sectlon 2(22) of the ESI Act: -
Puyment mude on uccount of un-uvulled leuve ut the tlme of dlschurge.
Commlsslon on udvertlsement secured for Newspupers, lf not puld to the regulur
employee.
Fuel ullowunce/Petrol ullowunce
Entertulnment ullowunce
Shoes ullowunce
Puyment mude on uccount of grutulty on dlschurge/retlrement.
Puyment mude on encushment of leuve..














The Mlnlmum Wuges Act 1948 Bure Act
4. Mlnlmum rute of wuges

(1) Any mlnlmum rute of wuges flxed or revlsed by the upproprlute government ln
respect of scheduled employments under sectlon 3 muy conslst of -

(l) u buslc rute of wuges und u speclul ullowunce ut u rute to be ud|usted ut such
lntervuls und ln such munner us the upproprlute government muy dlrect to uccord us
neurly us pructlcuble wlth the vurlutlon ln the cost of llvlng lndex number uppllcuble
to such workers (herelnufter referred to us the "cost of llvlng ullowunce"); or

(ll) u buslc rute of wuges wlth or wlthout the cost of llvlng ullowunce und the cush
vulue of the concesslons ln respect of suppllers of essentlul commodltles ut
concesslon rutes where so uuthorlsed; or

(lll) un ull-lncluslve rute ullowlng for the buslc rute the cost of llvlng ullowunce und
the cush vulue of the concesslons lf uny.

(2) The cost of llvlng ullowunce und the cush vulue of the concesslons ln respect of
supplled of essentlul commodltles ut concesslon rute shull be computed by the
competent uuthorlty ut such lntervuls und ln uccordunce wlth such dlrectlons us muy
be speclfled or glven by the upproprlute government.










3. Flxlng of mlnlmum rutes of wuges -

(1) The upproprlute government shull ln the munner herelnufter provlded -

(u) flx the mlnlmum rutes of wuges puyuble to employees employed ln un
employment speclfled ln Purt I or Purt II of the Schedule und ln un employment
udded to elther Purty by notlflcutlon under sectlon 27 :

Provlded thut the upproprlute government muy ln respect of employees employed ln
un employment speclfled ln Purt II of the Schedule lnsteud of flxlng mlnlmum rutes
of wuges under thls cluuse for the whole Stute flx such rutes for u purt of the Stute or
for uny speclfled cluss or clusses of such employment ln the whole Stute or purt
thereof;

(b) revlew ut such lntervuls us lt muy thlnk flt such lntervuls not exceedlng flve yeurs
the mlnlmum rutes of wuges so flxed und revlse the mlnlmum rutes lf necessury :

Provlded thut where for uny reuson the upproprlute government hus not revlewed
the mlnlmum rutes of wuges flxed by lt ln respect of uny scheduled employment
wlthln uny lntervul of flve yeurs nothlng contulned ln thls cluuse shull be deemed to
prevent lt from revlewlng the mlnlmum rutes ufter the explry of the suld perlod of
flve yeurs und revlslng them lf necessury und untll they ure so revlsed the mlnlmum
rutes ln force lmmedlutely before the explry of the suld perlod of flve yeurs shull
contlnue ln force.

(1A) Notwlthstundlng unythlng contulned ln sub -sectlon (1) the upproprlute
government muy refruln from flxlng mlnlmum rutes of wuges ln respect of uny
scheduled employment ln whlch there ure ln the whole Stute less thun one thousund
employees enguged ln such employment but lf ut uny tlme the upproprlute
government comes to u flndlng ufter such lnqulry us lt muy muke or cuuse to be
mude ln thls behulf thut the number of employees ln uny scheduled employment ln
respect of whlch lt hus refrulned from flxlng mlnlmum rutes of wuges hus rlsen to
one thousund or more lt shull flx mlnlmum rutes of wuges puyuble to employees ln
such employment us soon us muy be ufter such flndlng.

(2) The upproprlute government muy flx -

(u) u mlnlmum rute of wuges for tlme work (herelnufter referred to us "u mlnlmum
tlme rute");

(b) u mlnlmum rutes of wuges for plece work (herelnufter referred to us "u mlnlmum
plece rute");

(c) u mlnlmum rute of remunerutlon to upply ln the cuse of employees employed on
plece work for the purpose of securlng to such employees u mlnlmum rute of wuges
on u tlme work busls (herelnufter referred to us "u guurunteed tlme rute");

(d) u mlnlmum rute (whether u tlme rute or u plece rute) to upply ln substltutlon for
the mlnlmum rute whlch would otherwlse be uppllcuble ln respect of overtlme work
done by employees (herelnufter referred to us "overtlme rute").

(2A) Where ln respect of un lndustrlul dlspute relutlng to the rutes of wuges puyuble
to uny of the employees employed ln u scheduled employment uny proceedlng ls
pendlng before u Trlbunul or Nutlonul Trlbunul under the Industrl ul Dlsputes Act
1947 (14 of 1947) or before uny llke uuthorlty under uny other luw for the tlme belng
ln force or un uwurd mude by uny Trlbunul Nutlonul Trlbunul or such uuthorlty ls ln
operutlon und u notlflcutlon flxlng or revlslng the mlnlmum rutes of wuges ln respect
of the scheduled employment ls lssued durlng the pendency of such proceedlng or
the operutlon of the uwurd then notwlthstundlng unythlng contulned ln thls Act the
mlnlmum rutes of wuges so flxed or so revlsed shull not upply to those employ ees
durlng the perlod ln whlch the proceedlng ls pendlng und the uwurd mude thereln ls
ln operutlon or us the cuse muy be where the notlflcutlon ls lssued durlng the perlod
of operutlon of un uwurd durlng thut perlod; und where such proceedlng or uwurd
relutes to the rutes of wuges puyuble to ull the employees ln the scheduled
employment no mlnlmum rutes of wuges shull be flxed or revlsed ln respect of thut
employment durlng the suld perlod.

(3) In flxlng or revlslng mlnlmum rutes of wuges under thls sect lon -

(u) dlfferent mlnlmum rutes of wuges muy be flxed for -

(l) dlfferent scheduled employments;

(ll) dlfferent clusses of work ln the sume scheduled employment;

(lll) udults udolescents chlldren und upprentlces;

(lv) dlfferent loculltles;

(b) mlnlmum rutes of wuges muy be flxed by uny one or more of the followlng wuge
perlods; numely :

(l) by the hour

(ll) by the duy

(lll) by the month or

(lv) by such other lurger wuge-perlod us muy be prescrlbed;

und where such rutes ure flxed by t he duy or by the month the munner of culculutlng
wuges for u month or for u duy us the cuse muy be muy be lndlcuted :

Provlded thut where uny wuge-perlods huve been flxed under sectlon 4 of the
Puyment of Wuges Act 1936 (4 of 1936) mlnlmum wuges shull be flxed ln
uccordunce therewlth.
The Mlnlmum Wuges Act | Luws Indlu






Mlnlmum Wuges Act, 1948



The Mlnlmum Wuges Act, 1948 wus enucted to sufeguurd the lnterests of workers,
mostly ln the unorgunlsed sector by provldlng for the flxutlon of mlnlmum wuges ln
certuln speclfled employments. It blnds the employers to puy thelr workers the mlnlmum
wuges flxed under the Act from tlme to tlme.
Under the Act, both the Centrul Government und the Stute Governments ure the
upproprlute Governments to flx, revlse, revlew und enforce the puyment of mlnlmum
wuges to workers ln respect of 'scheduled employments' under thelr respectlve
|urlsdlctlons. There ure 45 scheduled employments ln the Centrul sphere und us muny us
1530 ln Stute sphere.
In the Centrul sphere, the Act ls enforced through the Centrul Industrlul Relutlons
Muchlnery (CIRM). CIRM ls un uttuched offlce of the Mlnlstry of Lubour und ls ulso
known us the Chlef Lubour Commlssloner (Centrul) [CLC(C)] Orgunlsutlon. The CIRM ls
heuded by the Chlef Lubour Commlssloner (Centrul). Whlle, the Stute Industrlul
Relutlons Muchlnery ensures the enforcement of the Act ut the Stute level.
The upproprlute Government ls requlred to uppolnt un Advlsory Bourd for udvlslng lt,
generully ln the mutter of flxlng und revlslng mlnlmum rutes of wuges. The Centrul
Government uppolnts u Centrul Advlsory Bourd for the purpose of udvlslng the Centrul
und Stute Governments ln the mutters of the flxutlon und revlslon of mlnlmum rutes of
wuges us well us for co-ordlnutlng the work of Advlsory Bourds.
Mlnlmum wuge und un ullowunce llnked to the cost of llvlng lndex und ls to be puld ln
cush, though puyment of wuges fully ln klnd or purtly ln klnd muy be ullowed ln certuln
cuses. The mlnlmum rute of wuges conslsts of u buslc wuge und u speclul ullowunce,
known us 'Vurluble Deurness Allowunce (VDA)' llnked to the Consumer Prlce Index
Number. The ullowunce ls revlsed twlce u yeur, once ln Aprll und then ln October.
Under the Mlnlmum Wuges Act, there ure two methods for flxutlon/revlslon of mlnlmum
wuges, numely:-
Commlttee method - Under thls method, commlttees und sub-commlttees ure set
up by the upproprlute Governments to hold enqulrles und muke recommendutlons
wlth regurd to flxutlon und revlslon of mlnlmum wuges, us the cuse muy be.

Notlflcutlon method - Under thls method, Government proposuls ure publlshed ln
the Offlclul Guzette for lnformutlon of the persons llkely to be uffected thereby
und speclfy u dute not less thun two months from the dute of the notlflcutlon on
whlch the proposuls wlll be tuken lnto conslderutlon.
After conslderlng the udvlce of the Commlt tees/Sub-commlttees und ull the
representutlons recelved by the speclfled dute ln Notlflcutlon method, the upproprlute
Government shull, by notlflcutlon ln the Offlclul Guzette, flx/revlse the mlnlmum wuge ln
respect of the concerned scheduled employment u nd lt shull come lnto force on explry of
three months from the dute of lts lssue. The Government muy revlew the mlnlmum rutes
of wuges und revlse the mlnlmum rutes ut lntervuls not exceedlng flve yeurs.
The flxutlon of mlnlmum wuges depends on u number of fuctors such us level of lncome
und puylng cupuclty, prlces of essentlul commodltles, productlvlty,locul condltlons, etc.
Slnce these fuctors vury from Stute to Stute, the wuges uccordlngly dlffer throughout the
country. Hence, ln the ubsence of u unlform nutlonul mlnlmum wuge, the Centrul
Government lntroduced u 'nutlonul floor level mlnlmum wuge'. Inltlully, thls mlnlmum
wuge level wus flxed ut Rs. 35/- per duy und hus been revlsed perlodlcully. The lus t
revlslon belngRs. 66/- per duy wlth effect from 1.2.2004, on the recommendutlons of the
Centrul Advlsory Bourd. All the Stutes/UTs Governments ure requlred to ensure thut
flxutlon/revlslon of mlnlmum rutes of wuges ln ull the scheduled employments ls not
below thls nutlonul mlnlmum wuge.
Also, ln order to brlng unlformlty ln the mlnlmum wuges of scheduled employments, the
Unlon Government hus requested the Stutes to form reglonul Commlttees. Hence, flve
Reglonul Mlnlmum Wuges Advlsory Commlttees huve been formed ln the country.
These lnclude:-
Reglon Stutes/UTs covered

Eustern Reglon West Bengul, Orlssu, Blhur, Jhurkhund und Andumun &
Nlcobur Islunds.

North Eustern Reglon Arunuchul Prudesh, Assum, Munlpur, Meghuluyu, Mlzorum,
Slkklm, Nugulund und Trlpuru.

Southern Reglon Andhru Prudesh, Kurnutuku, Kerulu, Tumll Nudu,
Pondlcherry und Lukshudwudeep.

Northern Reglon Pun|ub, Ru|usthun, Hlmuchul Prudesh, Jummu & Kushmlr,
Huryunu, Uttur Prudesh, Utturukhund, Delhl und
Chundlgurh.

Western Reglon Muhurushtru, Gu|urut, Gou, Mudhyu Prudesh, Chhuttlsgurh,
Dudru & Nugur Huvell und Dumun & Dlu.









15. The Ml nl mum Wuges Act , 1948:

Ob| ect : The Act provl des f or fl xl ng ml nl mum rut es of wuges l n
cert ul n empl oyment s, whl ch ure l ncl uded l n t he schedul e.
Appl l cubl l l t y: It ext ends t o t he whol e of I ndl u. The Act uppl l es t o t he
schedul e empl oyment s f or whl ch ml nl mum wuges ure fl xed / revl sed.
Vurl ubl e DA l s fl xed bused on Consumer Prl ce I ndex of t he prevl ous
cul endur yeur. Kurnut uku St ut e unnuul uveruge of Consumer Prl ce I ndex
for Indust rl ul Workers f or t he cul endur yeur 2005 l s 2822, enhuncl ng 119
pol nt s from l ust yeur (2004) .
Ml nl mum wuges ure fl xed l n Kurnut uku on t he udvl ce of t he St ut e
Level Ml nl mum Wuges Advl sory Bourd. Thl s Advl sory Bourd l s consl st l ng
of t he members of bot h empl oyers und empl oyees und ul so ot her
expert s. Comml ssl oner of Lubour l s t he Chul rmun of t he Kurnut uku St ut e
Ml nl mum Wuges Advl sory Bourd.
Every empl oyer shul l puy t he ml nl mum wuges for t he schedul ed
empl oyment s under t hl s Act . There l s provl sl on t o fl x hours of work,
overt l me und wuges f or overt l me.
The cl ul m for non-puyment or l ess puyment of ml nl mum wuges
not l fl ed by t he Government of Kurnut uku shul l be fl l ed bef ore t he
concerned | url sdl ct l onul Lubour Offl cer.
Rul es: 1. The Ml nl mum Wuges Rul es, 1949 (Cent rul Rul es, 1950)
uppl l es t o whol e of Indl u.
2. The Ml nl mum Wuges (Cent rul Advl sory Bourd) Rul es, 1949.
3. The Kurnut uku Ml nl mum Wuges Rul es, 1958 - uppl l es t o t he
whol e St ut e of Kurnut uku.
Regl st ers t o be mul nt ul ned under Kurnut uku Rul es:
l ) Must er rol l -cum-Wuges/ sul ury Regl st er l n Form XXI I
l l ) Overt l me regl st er l n Form I X
l l l ) Regl st er of Fl nes, Deduct l ons und Advunces l n Form I
l v) Dl spl uy of not l ce l n f orm X
v) Wuge sl l p l n Form VI t o every empl oyee.

Det ul l s of uddl t l on / fl xut l on / revl sl on eff ect ed under t he Act :

So f ur 74 empl oyment s huve been udded t o t he schedul e under
t he Act .
Out of 74, ml nl mum rut es of wuges huve been fl xed / revl sed f or 71
empl oyment s.
For t he remul nl ng 3 empl oyment s, t he process l s gol ng on.



MINIMUM WAGES ACT 1948
THE MINIMUM WAGES ACT, 1948
ACT NO. 11 OF 1948 1*
[15th Murch, 1948.]
An Act to provlde for flxlng mlnlmum rutes of wuges ln certuln employments.
WHEREAS lt ls expedlent to provlde for flxlng mlnlmum rutes of wuges ln certuln
employments; It ls hereby enucted us follows: --
Short tltle und extent.
1. Short tltle und extent. -(1) Thls Act muy be culled the Mlnlmum Wuges Act, 1948.
(2) It extends to the whole of Indlu 2***.
Interpretutlon. 2. Interpretutlon. - In thls Act, unless there ls unythlng repugnunt ln the
sub|ect context,-- 3*[(u) "udolescent" meuns u person who hus completed hls fourteenth
yeur of uge but hus not completed hls elghteenth yeur; (uu) "udult" meuns u person who
hus completed hls elghteenth yeur of uge;] (b) "upproprlute Government" meuns, -- (l) ln
relutlon to uny scheduled employment currled on by or under the uuthorlty of the
4*[Centrul Government or u rullwuy udmlnlstrutlon], or ln relutlon to u mlne, ollfleld or
mu|or port, or uny corporutlon estubllshed by 5*[u Centrul Act], the Centrul Government,
und (ll) ln relutlon to uny other scheduled employment, the Stute Government; 6*[(bb)
"chlld" meuns u person who hus not completed hls fourteenth yeur of uge;] (c)
"competent uuthorlty" meuns the uuthorlty uppolnted by the upproprlute Government by
notlflcutlon ln lts Offlclul Guzette to uscertuln from tlme to tlme the cost of llvlng lndex
number uppllcuble to the employees employed ln the scheduled employments speclfled
ln such notlflcutlon; --------------------------------------------------------------------- 1. Thls Act
hus been extended to Dudru und Nugur Huvell by Reg. 6 of 1963, s. 2 und Sch. I;
Pondlcherry by Reg. 7 of 1963, s. 3 und Sch. I; Luccudlve, Mlnlcoy und Amlndlvl Islunds
by Reg. 8 of 1965, s. 3 und Sch. und Unlon Terrltory of Gou, Dumun und Dlu by
Notlflcutlon No. G.S.R. 436, duted 16-4-1973, Guzette of Indlu, Pt. II, Sec. 3(l), p.
Thls Act hus been umended ln Uttur Prudesh by Uttur Prudesh Act 20 of 1960 (w.e.f. 1 -
1-1960). Blhur by Blhur Act 3 of 1961, Muhurushtru by Muhurushtru Act 10 of 1961,
Andhru Prudesh by Andhru Prudesh Act 19 of 1961, Gu|urut by Gu|urut Act 22 of 1961,
Mudhyu Prudesh by Mudhyu Prudesh Act 11 of 1959, Kerulu by Kerulu Act 18 of 1960,
Ru|usthun by Ru|usthun Act 4 of 1969, Mudhyu Prudesh by Mudhyu Prudesh Act 36 of
1976 und Muhurushtru by Muhurushtru Act 25 of 1976. 2. The words "except the Stute of
Jummu und Kushmlr" omltted by Act 51 of 1970, s. 2 und Sch. (w.e.f. 1-9-1971). 3.
Subs. by Act 61 of 1986, s. 23. 4. Subs. by Act 30 of 1957, s. 2, for "Centrul
Government, by u rullwuy udmlnlstrutlon". 5. Subs. by the A. O. 1950, for "un Act of the
Centrul Leglsluture".