1. All remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled.
2. and includes any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not illegal or lay of.
3. and other additional remuneration, if any paid at intervals not exceeding 2 months.
However, it does not include:-
a. any contribution paid by the employer to any pension fund or provident fund or under ESI Act,
b. any traveling allowance or the value of any traveling concession,
c. any sum paid to the person employed to defray the special expenses entitled to him by the nature of his employment or
d. any gratuity payable on discharge.
In order to ascertain as to whether the expenditure incurred by the employers comes under section 2(22) of the ESI Act,
a) Suspension Allowance/Subsistence Allowance is wages
b) Overtime allowance is wages for payment of contribution only but not for determination of employee’ u/s 2(9) of the Act.
c) Inam is wages when it is paid for special skill or higher responsibilities or where the employer has no right to withdraw or revise it
d) 'Lay Off' pay is wages.
e) House Rent Allowance is wages.
f) Night Shift/Heat/Gas/Dust Allowance is wages.
g) ‘Conveyance Allowance’ is wages which arises out of contract of employment from 1.4.02 as per Hqrs. letter dated 21.3.02
h) Medical Allowance is wages when it is not re-imbursed.
i) Newspaper Allowance is wages when it is not re-imbursed.
j) Education Allowance’ is wages when it is not re-imbursed.
k) ‘Drivers Allowance’ is wages.
l) Food, Meal, Tiffin and Lunch allowance is wages when it arises out of contractual
m) ‘Gazetted Allowance’ is wages
n) ‘Wages’ and Dearness Allowance’ for un-substituted holidays is wages
o) Interim Relief is wages.
p) Attendance Bonus is wages provided the periodicity is not more than 2 months
q) Hamalies or collies at a particular time in the premises of the employer is ‘employee’ and contribution is payable.
r) Short period contract for service – electrician, carpenters, plumbers, repair work if the work is done within the factory premises, contribution is payable in respect of employees.
s) The following items may be considered as ‘Wages’ :- (1) Matinee allowance paid to the cinema employee (2) Shift allowance (3) Location allowance paid in addition to D.A. to meet the high house rent (4) Compensatory allowance (5) Cash handling allowance paid to Cashier (6) Supervisory allowance (7)Additional pay paid to training staff (8) Charge allowance (9) Steno/typist allowance (10) Plant allowance (11) Computer allowance (12) Gestetner/Photo copies/printers allowance (13) Personal /special allowance (14) Machine allowance (15) Canvassing allowance (16) First aid allowance (17) Personal allowance for skill, efficiency or past good records (18) Area allowance for high cost living (19) Ex-gratia payment if payment is made within an interval of 2 months.
(20) Conveyance all w.e.f. 01.04.02 (21) Food/Tiffin/Meal all w.e.f. 06.05.03
Coverage of workers engaged by the outside agencies / job contractors in connection with the work of the principal employer outside the premises. For the purpose of verification and inspection, the details in respect of these employers/ employees should be furnished by the Principal Employer in proforma prescribed in Annexure-I.
21st September 2016 From India, Bangalore