In wage code, how is benefits in kind valued?

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Hi Community,

In new Wage code, how will the kind benefits (Car, Stocks etc) be valued? Also, how will cash benefits be treated differently?

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Hi Chitra,

As per the Code,

  1. It defines what constitutes and comes under the definition of wages i.e. the basic pay, dearness allowance and the retainer allowance if any.
  2. Other than the above 3 all other cash benefits/allowances are excluded from the ‘wages’ definition and the code expressly provides a list of such allowances.
  3. With regard to remuneration in kind, the Code says:
    Where an employee is given in lieu of the whole or part of the wages payable to him, any remuneration in kind by his employer, the value of such remuneration in kind which does not exceed fifteen per cent. of the total wages payable to him, shall be deemed to form part of the wages of such employee.

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

Hope the above helps.

Regards,
Bhuvana Anand

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