In new wage code what happens if allowances exceed 50% of the total pay?

Hi,

Wanted to know- In new wage code what happens if allowances exceed 50% of the total remuneration? How will it be adjusted? Penalties?

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Hi Manjunath,

Any act or omission that contravenes a law will be punishable as prescribed under its provisions.

As per the Code on Wages,

If the employer pays less than the due amount to any employee, shall be punishable with a fine that may be up to Rs.50,000; The employer convicted for this offence if found guilty again repeating such offence within 5 years, shall be punishable with imprisonment that may be up to 3 months or a fine up to Rs.1,00,000 or both.

The employer who contravenes any other provisions of the Code shall be fined up to Rs.20,000. Repetition of such offence within 5 years shall attract imprisonment up to 1 month or a fine up to Rs.40,000 or both.

The employer will be fined up to Rs.10,000 for non-maintenance or improper maintenance of records.

A Simple Guide to the Code on Wages, 2019 (greythr.com)

Regards,
Bhuvana Anand

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