Supreme Court of India judgement on payment of conveyance allowance

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1

As per Supreme Court of India judgement on payment of conveyance allowance as per the present case does not fall under definition of term wages.

What does this mean? How does this impact?

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2

Hi Namita,

This reported judgment is for the computation of ESI contribution.

We had shared the details earlier here: kindly refer to this link Conveyance allowance not a part of wages to compute ESI contribution

This may be of help to you.

Regards,
Bhuvana Anand

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3

Can you kindly clarify on the following:

Whether minimum wages payable as per Karnataka Shops & Establishments ACt include;

  1. Employers contribution to Provident Fund
  2. Employers share of ESI

Since the Notification makes mention of only Basic + VDA, per day & per month.

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4

Hi Mark,

Minimum Wages have to be paid as per the Minimum Wages Act, and respective State enacted rules.

You have to consider the definition of wages as per the Minimum Wages Act here i.e.,

“wages” means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes house rent allowance, but does not include—

(i) the value of—
(a) any house-accommodation, supply of light, water, medical attendance, or
(b) any other amenity or any service excluded by general or special order of the
appropriate Government;

(ii) any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance;

(iii) any travelling allowance or the value of any travelling concession;

(iv) any sum paid to the person employed to defray special expenses entailed on him by the
nature of his employment; or

(v) any gratuity payable on discharge.

Regards,
Bhuvana Anand

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