Definition of wages under the minimum wages act, 1948.

Definition of wages under the minimum wages act, 1948.

Section 2(h) the minimum wages act, 1948 defines wages as:- 

All the 'remuneration' which can be expressed in terms of 'money' are called wages.

When a person who is employed expressly or impliedly and that person fulfils the terms of employment, then the employer pays the employee remuneration for completion of work through wages.

Wages do not include:-

1)  The value of :-

• House accommodation, supply of light, water and medical attendance.
• Any amenity or service which is excluded by the appropriate Government.

2)  Contribution paid to any pension fund, provident fund and scheme of social insurance.

3) travelling allowance or travelling concession.

4) any special expenses covered by employee during employment work are not wages. 

5) Any gratuity payable on discharge.

Case Law:-

Prerna Sahyog Vs. Authority Under Minimum Wages Act and Others.

In this case an employee complaint of non- payment of wages by the employer and the authority ordered the employer to pay eight times of wages as compensation to the employee.

The supreme court held that this amount of compensation was too high compared to minimum wages payable, therefore the compensation was reduced.

Reference  :-

Textbook - Labour and Industrial Laws, 29th Edition by S.N. MISRA.