Wage Structure

1
The points for clarifications are as under:
• Direct implementation of the judgment • Wage components for PF

contribution • Judgment - Prospective or retrospective • Restructuring
process • Way forward • Crucial test to determine an allowance as wages
for PF contribution • Effect of judgment has retrospective effect
• Employer’s liability for past period for contributions, damages and
interest • Contributions from the employees for the past period • Splitting
of wages for contributions • Incentive and variable earnings as wages
• Impact of salary components for International Workers • Obligations of
exempted establishments • When the wages are more than Rs.15,000
per month.
Labour Law Reporter

www.labourlawreporter.com
2
Seminar is being held to understand the implications of the
Judgment of Supreme Court in interpreting the definition of ‘basic
wages’ as defined in section 2 (b) of the Act.
To understand the judgment it is necessary to understand certain
relevant provisions of the Act and Scheme viz.
• Basic Wages as defined under Section 2 (b);
• Contribution under section 6 and para 29 of the Scheme,
• Excluded employee as defined under para 2 (f) of the
Scheme
• Wage ceiling for the coverage under EPF Act.
Labour Law Reporter

3
Wage ceiling revision (date) In Rs.
1st November 1952 300
1st June 1957 500
31st December 1962 1,000
11th December 1976 1,600
1st September 1985 2,500
1st November 1990 3,500
1st October 1994 5,000
1st June 2001 6,500
1st September 2014 15,000
Labour Law Reporter

4
Wage/Salary Slab from 1961 onward
SALARY SLAB RATE OF RATE OF ADM. CHARGES INSPECTION ELIGIBILITY
CONTRIBUTION CONTRIBUTION CHARGES IN PERIOD OF
FOR LESS THAN FOR MORE R/O EXM. ESTT. MEMBERSHIP
EMPLOYEES
(6.1/4%) from
(6.1/4%) from (0.37%) from
1.1.1952 to (240 days/12
(Rs.1000/-) 1.11.1952 to 1.1.1952 to (0.09% from
31.12.1962 months) from
from 1.1.1961 31.7.1988 (For 30.9.1986 1.1.1952 till
(For 50 or more 1.1.1952 to
to 30.11.1979 less than 50 (Min. Rs.5/- date
employees) 31.8.1974
employees) w.e.f. 1.12.78)
(8.1/3%) from (8%) from

(120 days/6
(Rs.1600/- 1.8.1988 to 1.1.1963 to (0.65%) from (0.09%) from
months) from
from 1.12.1976 21.9.1997 (For 1.8.1988 (for 1.10.1986 to 1.11.1952 to
1.9.1974 to
to 31.8.1985 less than 50 50 or more 31.7.1998 31.7.1998
31.1.1981
employees) employees)
(8.1/3%) from
(60 days/3
(Rs.2500/-) (10%) from 1.8.1988 to (1.10%) from1 (0.18%) (0.09%)
months) from
From 1.9.1985 22.9.1997 till 31.5.1989 (For 1.8.1998 till from 1.8.1988
1.2.1981 to
to 31.10.1990 date 50 or more date till date
31.10.1990
employees)
On dt. Of
(10%) from
joining from
(Rs.3500/-) 1.6.1989 to
(0.85%) from 1.11.1990 but
from 1.11.1990 30.4.1997 (for
1.1.2015 as per CPFC
to 30.9.1994 50 or more
Circular w.e.f.
employees)
1.5.1995
Labour Law Reporter
5
Wage/Salary Slab from 1961 onward
SALARY SLAB RATE OF RATE OF ADM. CHARGES INSPECTION ELIGIBILITY
CONTRIBUTION CONTRIBUTION CHARGES IN PERIOD OF
FOR LESS THAN FOR MORE R/O EXM. ESTT. MEMBERSHIP
EMPLOYEES
(10%) from On dt. of
1.5.1997 to joining from
(Rs.5000/-)
21.9.1997 (0.65%) from 1.11.1990 but
from 1.10.1994
10% for 20 and 1.4.2017 as per CPFC
to 31.5.2001
above w.e.f. Circular w.e.f.
1.5.1997 1.5.1995
(12% from
Rs.5000/- 22.9.1997 to
31.5.2001
Rs.6500/- (12%) from

w.e.f. 1.6.2001 1.6.2001
Rs.15,000/- (0.50%) from

w.e.f. 1.9.2014 1.6.2018
Labour Law Reporter

6
Wage Restructure – Correction for Adoption
• Realignment of the compensation structure (contributions) and
deposit of provident fund on correct amount.
• Impact on net take home of the employee – additional payment
may be made to the employee.
• Timing to be aligned (for wage re-structure) with increments
which is generally effective from 1st April.
• For contractors’ employees, the principal employer should take the
plea that the relationship was on ‘principal to principal’ basis and
the contractor has its own code number under Employees
Provident Fund Act. Reliance can be made in the judgment of
Supreme Court in Food Corporation of India vs. The Regional
Provident Fund Commissioner, 1990 LLR 64 (SC) wherein it was
held that principal employer is required to provide list of
contractors. The direct judgments are - Punjab & Haryana High
Court in Calcutta Construction Company vs. Regional Provident
Fund Commissioner, 2015 LLR 1023 and Madras High Court in
Brakes India Limited vs. EPFO, 2015 LLR 635.
Labour Law Reporter
7
Definition of “Basic Wages” under EPF Act
“Section 2(b) of the EPF Act defines the term basic wage –
‘basic wage’ means all emoluments which are earned by an
employee while on duty or on leave or on holidays with wages in
either case in accordance with the terms of contract of employment
and which are paid or payable in cash to him, but does not include
(i) the cash value of any food concession.
(ii) any dearness allowance (that is to say, all cash payments by
whatever name called paid to an employee on account of a rise
in cost of living), house rent allowance, overtime allowance,
bonus, commission or any other similar allowance payable to
the employee in respect of his or of work done in such
employment.
(iii) any presents made by the employer.”
Labour Law Reporter

8
• The "basic wages" as defined therein means all emoluments which
are earned by an employee while on duty or on leave with wages
in accordance with the terms of the contract of employment and
which are paid or payable in cash.
• The exception suggests that even though the main part of the
definition includes all emoluments which are earned in
accordance with the terms of the contract of employment, certain
payments which are in fact the price of labour and earned in
accordance with the terms of the contract of employment are
excluded from the main part of the definition of "basic wages".
• The exception (i) Excludes cash value of any food concession in
any case is not payable in cash and
• Exception (ii) Excludes Dearness Allowance also.
• Both these payments are included for contribution under
paragraph 29 of the Scheme.
Labour Law Reporter

9
Exception (ii) excludes house rent allowance, overtime allowance, bonus,
commission or any other similar allowance payable to the employee in
respect of his employment or of work done in such employment.
• The House Rent Allowance is not paid in many concerns and
sometimes in the same concern it is paid to some employees but
not others.
• Overtime Allowance is paid to only those employees who are
engaged for overtime and it is not paid to all the employees as a
matter of routine.
• Similarly, commission or any other similar allowance is not paid in
all the concerns nor they are earned by all employees of the same
concern, though they exist and earned in accordance with the terms
of the contract of employment.
• Exception (iii) excludes presents
The presents are not earned in accordance with the terms of contract
in employment but given at discretion of the employer. Hence
excluded from the definition of basic wages.
Labour Law Reporter
10
• In the case of Bridge and Roof Company Ltd. vs. Union of India
(5 FLR 423) has examined and interpreted the provisions of
Section 2(b) i.e. basic wages as well as Section 6 of the EPF
Act.
• The issue before the Court was, whether the production Bonus
paid for extra production in addition to Basic Wages falls
within the definition of “Basic Wages” on which the
Contribution is payable.
• Held: -
➢ Where the wage is universally, necessarily and ordinarily

paid to all across the board, such emoluments are basic
wages.
Labour Law Reporter
11
➢ Where the payment is specially paid only to those who avail
of the opportunity is not basic wages.
By way of example it was held that overtime allowance, though

it is generally in force in all concerns is not earned by all
employees of a concern. It is also earned in accordance with
the terms of the contract of employment but because it may
not be earned by all employees of a concern, it is excluded
from basic wages.
Labour Law Reporter

12
The Supreme Court in Manipal Academy of Higher Education vs.
Provident Fund Commissioner [2008 LLR 443] reiterated the basic
principles as laid down in Bridge & Roof Case by holding as under:-
Where the wage is universally, necessarily and ordinarily paid to all

across the board such emoluments are basic wages.
• Where the payment is available to be specially paid to those who

avail of the opportunity is not basic wages. By way of example it
was held that overtime allowance, though it is generally in force in
all concerns is not earned by all employees of a concern. It is also
earned in accordance with the terms of the contract of employment
but because it may not be earned by all employees of a concern, it
is excluded from basic wages.
• Conversely, any payment by way of a special incentive or work is

not basic wages.”
Labour Law Reporter
13
In Muir Mills Co. Ltd Kanpur vs. Its Workmen, AIR 1960 SC 985
the Supreme Court held:
• Any variable earning which may vary from individual to
individual according to their efficiency and diligence will stand
excluded from term basic wages.
• “Basic wage" never includes the additional emoluments which
some workmen may earn, on the basis of a system of bonuses
related to the production. The quantum of earning in such
bonuses varies from individual to individual according to their
efficiency and diligence; it will vary sometimes from season to
season with the variations of working conditions in the factory
or other place where the work is done; it will vary also with
variations in the rate of supplies of raw material or in the
assistance obtainable from machinery. This very element of
variation, excludes this part of workmen's emoluments from
the connotation of "basic wages"…
Labour Law Reporter
14
Civil Appeal No. 6221 of 2011 – RPFC(II) West Bengal vs.
Vivekananda Vidyamandir & others
Civil Appeal Nos. 3965 -3966 of 2013 – Surya Roshini Ltd. vs.
Employees Provident Fund and others
Civil Appeal Nos. 3969-3970 of 2013 – U-Flex Ltd. vs.

Employees Provident Fund and others
Civil Appeal Nos. 3967-3968 of 2013 – Montage Enterprises Pvt.

Ltd vs. Employees Provident Fund and another
Transfer Case ( C) No 19 of 2019 (arising out of TP ( C) No

1273/2019 – The Management of Saint Gobain Glass India Ltd.
vs. The Regional Provident Fund Commissioner, Employers’
Provident Fund Organization
Labour Law Reporter
15
Multiple appeals before the Supreme Court raised a
common question of law whether the other allowances
(such as travel allowance, canteen allowance, special
allowance, management allowance and conveyance
allowance, etc) paid by an establishment to its
employees would fall within the expression ‘basic
wages’ for computation of contribution towards
Provident Fund.
Labour Law Reporter

16
The term ‘basic wages’ contains exceptions and will not include what
would ordinarily not be earned in accordance with the terms of the
contract of employment. Also the payments earned by an employee in
accordance with the terms of contract of employment, the basis of
inclusion in Section 6 and exclusion in Section 2(b)(ii) is that whatever is
payable in all concerns and is earned by all permanent employees is
included for the purpose of contribution.
Note : At the time of judgment, only permanent employee were covered under the Act
But, whatever is not payable by all concerns or may not be earned by all
employees of a concern are excluded for the purposes of contribution. It
is only those emoluments earned by an employee in accordance with the
terms of employment which would qualify as basic wage and discretionary
allowances not earned in accordance with the terms of employment would
not be covered by basic wage. The Act itself excludes certain allowance
from the term basic wages.
. Labour Law Reporter
17
The Act is a social beneficial welfare legislation meant for
protection of the weaker sections of the society.
Under Section 6 of the EPF Act, the appellant is liable to pay
contribution to the provident fund on basic wages, dearness
allowance, and retaining allowance (if any).
In order to exclude any incentive wage from basic wage, it should
have a direct nexus and linkage with the amount of extra output.
Section 2(b)(ii) defined dearness allowance as all cash payment
by whatever name called paid to an employee on account of a
rise in the cost of living. The allowance shall therefore fall within
the term dearness allowance, irrespective of the nomenclature, if
being paid to all employees on account of rise in the cost of
living.
Labour Law Reporter

18
The implications of the judgment will be in respect of:
• Domestic workers with basic salary less than INR 15,000 per
month as per para 26A and para 2 (f) of the EPF Scheme.
• International workers as proviso to Para 26A of the Provident

Fund Scheme is not applicable for international workers
Domestic workers with basic salary exceeding INR 15,000 per

month may not get impacted due to this ruling - where Provident
Fund contributions are made by the employer on full basic salary
or on minimum INR 15,000 per month.
Labour Law Reporter

19
Compliances by employers :-
• The employers will have to pay Provident fund on all the

components of the salary/wages up to the limit of
Rs.15,000/- except House Rent Allowance
Or
• Restructure the WAGE components.
Labour Law Reporter

20
Minimum Wages – Splitting of for PF Contribution
In Asstt. Provident Fund Commissioner vs. M/s. G4S Security

Services (India) Ltd. and Anr., 2011 LLR 943 the Division Bench of
Punjab & Haryana High Court has held that in the absence of any
prohibition in the EPF&MP Act the minimum wages can be split
into HRA for provident fund contributions. The Delhi High Court
has also taken the same view as reported in 2012 LLR
22. Although an appeal has been filed by the EPFO in the
Supreme Court but no stay has been granted. In this context,
reference be made to the circular of EPFO dated 2.12.2011 (can
be downloaded from www.labourlawreporter.com) wherein the
EPF authorities have been asked to keep the early direction dated
23.5.2011 for levying of EPF contributions on minimum wages be
kept in abeyance.
Labour Law Reporter

21
Country Effective from Country Effective from
BELGIUM 01.09.2009 FINLAND 01.08.2014
GERMANY 01.10.2009 SWEDEN 01.08.2014
SWITZERLAND 29.01.2011 CZECH REPUBLIC 01.09.2014
GRAND DUCHY OF 01.06.2011 NORWAY 01.01.2015

LUXEMBOURG
FRANCE 01.07.2011 AUSTRIA 01.07.2015
DENMARK 01.05.2011 CANADA 01.08.2015
REPUBLIC OF KOREA 01.11.2011 AUSTRALIA 01.01.2016
NETHERLANDS 01.12.2011 JAPAN 01.10.2016
HUNGARY 01.04.2013 PORTUGAL 08.05.2017
With Singapore India has entered into Economic Development Agreement
Labour Law Reporter

22
The definition of basic wages defined under the Act has been subject
matter of Judicial Interpretation by the different High Courts and Supreme
Court. Examples are stated below;
SL
Components Attracted Basis
No.
1 Basic wages or basic pay Included Section 2(b)
2 Dearness Allowance Included Section 6 and para 29
3 Wages during rest or holiday Included Being contract of employment
4 Special pay or special allowance Included
5 Wages during leave Included Being contract of employment
Labour Law Reporter

23
SL
No.
6 Cash value of food concession Included (from basic Para 29

wage)
7 Free/food tiffin allowance Included
8 City compensatory allowance Included
9 Retaining allowance / Included Sec. 6 and para 29

retention allowance
10 Maternity Leave salary Included Since wages on leave

included.
Canteen Allowance Included

11
Labour Law Reporter

24
SL
No.
12 Educational allowance Included
D.C.M., Shriram
13 Good work reward Included Consolidated Ltd. vs. The
Regional Provident Fund
Commissioner, 2015 LLR
473 (Del. HC)
14 Lay off compensation Included
15 Medical/Sickness allowance Included unless paid Medical/Sickness

as reimbursement allowance
on production of
bills
16 Ex-gratia adhoc payment paid every Included

month
Labour Law Reporter

25
SL
No.
17 House Rent Allowance Excluded
18 Overtime allowance Excluded Sec.2(b)(ii)
20 Statutory Bonus Excluded Sec.2(b)(ii)
Manipal Academy of Higher

19 Leave encashment Excluded Education vs. Provident Fund
Commissioner, 2008 LLR 443
(SC)
21 Production or incentive bonus Excluded T.I. Cycles of India, Ambatuur,

Chennai vs. M.K. Gurumani &
Ors., 2002 LLR 57 (SC)
Labour Law Reporter

26
SL
No.
22 Service charges collected from Excluded The Rambagh Palace Hotel,

customers and paid to Jaipur V Rajasthan Hotel
employees Workers Union, Jaipur, 1977
(34) FLR 12 (S.C.3J)
23 Notice pay in lieu of termination Excluded India United Mills Ltd. V. RPFC,
1959 II LLJ 733 (Bom HC)
24 One month wage u/s 33(2)(b) of Excluded Dinesh Khare V. Industrial

Industrial Disputes Act Tribunal, 1982 II LLJ 17 (Raj.HC)
Labour Law Reporter

27
The judgment only interprets the law or section as such the
meaning assigned will have the effect as if it is from 1st day of
the statute
In the latest judgment in Vivekanand Vidya Mandir case the

Supreme Court has reiterated the 6 Judge Bench in Bridge and
Roof case (5 FLR 423). Therefore, the judgment has retrospective
effect.
The above judgment has not changed the components of the

allowances which fall outside the ‘basic wages’.
Labour Law Reporter

28
• Although NEEM scheme is part of AICTE Regulations which has Statutory
force, the RPFC has sent a circular that the NEEM Trainees should be
covered under the EPF Act as there is no exemption provided under the
EPF Act.
• NEEM Trainees are engaged by the NEEM Agent since these trainees are
considered as students and scheme is basically on the job training
• The class room is the Factory Shop Floor itself
Labour Law Reporter

29
• Armed with the decision of the Supreme Court now they are likely to
indulge in more inspections to recover the additional contributions,
interest and damages or even prosecution. It is better known to the
employers that the authorities under the laws are vested with
unrestricted powers and one stick is good enough for beating the
employers and many a times the plight of an employer is like that of
a pigeon thrown to the hungry cats for prowling.
• Executive vigilantism has increased and the result is the epoch
making judgment of the Supreme Court
• Although the name of Inspector under the EPF & MP Act is renamed
as ‘Social Security Officer’ their bizarre behaviour has not reformed
• RPFC Madhya Pradesh has already issued a circular warning the
establishments to include all the components for the purpose of PF
Contribution failing which stringent action will be taken
Labour Law Reporter

30
Authorities will apply the interpretation as given by Supreme Court in
Vivekananda Vidya Mandir case and dispose of the pending cases.
Hence, it is better to effectively deal with the issues by giving proper

explanation to each and every allowance and try to minimize the liability at
the stage of 7A enquiry itself or even before that when inspection is carried
out.
Prospectively restructure the components effectively and avoid a situation

where the authorities treat the wages as camouflaged.
Labour Law Reporter

31
For Employers: As more and more allowances will be included, the cost of PF
contribution will increase
In most of the establishments the flexi labour is engaged in large numbers
who are paid only the minimum wages or little above minimum wages.
In all such cases the cost to the company would increase
For Employees: Since provident fund contributions will go up which in turn
decreases their take home salary
The employees retirement savings will increase
Labour Law Reporter

32
• By recklessly splitting the wages, the Employers are caught in
the dragnet of PF Authorities
• PF Authorities derive perverse pleasure in harassing Employers
• Judgment should be taken by the Employers as a wake up call
• It is time to restructure the salary to be in tune with the SC
Judgment
• Even in case of existing terms of settlement restructure the
components after discussing with the workmen/trade union
• While fixing salary for fresh recruits avoid too many
allowances and restrict to Basic, VDA, HRA and performance
allowance.
Labour Law Reporter

33
• Incase of statutory bonus and gratuity would become the
basis since the excluded allowances will be included.
• Employer and Organizations should take up the issue with

the Central Government and get instructions issued to PF
authorities to implement for the future
Labour Law Reporter

34
Contractor’s Employees – Principal
Employer not Liable
The relationship of principal employer and the contractor is on

‘principal to principal’ basis. In the absence of control and
supervision by the principal employer no liability can fastened for
PF contributions payable by the contractor as held by Supreme
Court in Food Corporation of India vs. RPFC, 1990 LLR 64.
Labour Law Reporter

35
1. SC Judgment does not deal with the splitting of the salary
However the message is loud and clear that splitting of the basic wages
into various allowances is ruled out.
2. If the basic salary is Rs. 15000 or more the Judgment will not have any
effect as held in Marathwada Gramin Bank Karamchari Sanghatana and
Anr. vs. Management of Marathwada Gramin Bank and Ors., 2011 LLR
1130.
Labour Law Reporter

36
International Workers
• The special provisions of provident fund contribution by the
International Workers are contained in paragraph 83 of EPF
Scheme and 43-A of the Pension Scheme.
• The changes under the provident fund Scheme in respect of

international workers relate to excluded employees,
definition of international worker, class of international
worker entitled to and required to join provident fund
Scheme. Retention of membership of the EPF Scheme and
the circumstances in which the accumulation in the provident
fund are payable to an international worker, etc. ,
• There is no change in the definition of basic wages, the rate

of contribution and other provisions of the EPF Scheme and
all the provisions, as applicable, to the domestic workers are
also applicable to international workers.
Labour Law Reporter

37
International Workers
• In the case of international workers, EPF contribution is to be
made on basic wages + Dearness allowance + Retaining
allowance, if any, (it is not applicable in the case of
international workers) + cash value of food concession.
• The decision of Hon’ble supreme will impact international

workers also, if they are being paid any allowances which are
not specifically excluded under the definition of Basic wage a
defined under Section 2(b) of the EPF Act.
• The EPF department in reply to FAQs available on their

website have clarified that in case of international workers
EPF contribution shall have to be made on basic wages +
Dearness allowance and cash value of food concession.
Labour Law Reporter

38
International Workers – Impact of Judgment
The salary of international workers could be restructured as under:
• To fix the basic wages at 50-60% of the gross salary.
• To fix 40-50% of the basic wages as HRA.
• The balance amount may be paid either as commission or gift.

The quantum of commission/gift should be based on the
performance or production.
• The international workers who join the service of the

establishment covered under EPF Scheme on or after
01.09.2014, are not eligible for coverage under the Pension
Scheme (EPS)
Labour Law Reporter

39
International Workers – Impact of Judgment
• In the case of International Worker coming from the countries

with whom India has entered into Social Security Agreement
(SSA), there is no need for restructuring the salary if the
International Worker has produced certificate of coverage as
they are not to be covered under Provident Fund in India
• India has entered into Social Security Agreement with 18

countries as per the list given below
Labour Law Reporter

40
Don’t Repeat Mistake and Repent
Keep in mind Five Factors :
1. WAGE CEILING FOR PF IS LIKELY TO BE INCREASED HENCE RE-ALIGN

WAGE STRUCTURE FOR LONGER PERIOD.
2. INCORPORATE ENSUING ANNUAL INCREMENTS (W.E.F. 1.4.2019) TO

REVISE WAGE STRUCTURE EVEN IF DELAYED.
3. BASIC WAGES ONCE INCREASED FOR PF CONTRIBUTIONS CAN'T BE

REDUCED LATER ON.
4. MERGER OF SOME ALLOWANCES IN HRA WILL BE MONEY SAVER AND

TAKE HOME SALARY OF EMPLOYEES WILL BE HIGHER.
5. EMPLOYER'S SHARE FOR CONTRIBUTION WHEN HIGHER CAN BE

REDUCED TO RS.15,000.
Labour Law Reporter

41
Thank You
Labour Law Reporter

42
LABOUR LAW REPORTER
43

Wage Structure

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1

The points for clarifications are as under:

• Direct implementation of the judgment • Wage components for PF

Labour Law Reporter

Labour Law Reporter

Labour Law Reporter

(8.1/3%) from (8%) from

Rs.6500/- (12%) from

Rs.15,000/- (0.50%) from

Labour Law Reporter

Labour Law Reporter

Labour Law Reporter

➢ Where the wage is universally, necessarily and ordinarily

By way of example it was held that overtime allowance, though

Labour Law Reporter

Where the wage is universally, necessarily and ordinarily paid to all

• Where the payment is available to be specially paid to those who

• Conversely, any payment by way of a special incentive or work is

Civil Appeal Nos. 3969-3970 of 2013 – U-Flex Ltd. vs.

Civil Appeal Nos. 3967-3968 of 2013 – Montage Enterprises Pvt.

Transfer Case ( C) No 19 of 2019 (arising out of TP ( C) No

Labour Law Reporter

Labour Law Reporter

• International workers as proviso to Para 26A of the Provident

Domestic workers with basic salary exceeding INR 15,000 per

Labour Law Reporter

• The employers will have to pay Provident fund on all the

• Restructure the WAGE components.

Labour Law Reporter

In Asstt. Provident Fund Commissioner vs. M/s. G4S Security

Labour Law Reporter

GERMANY 01.10.2009 SWEDEN 01.08.2014

SWITZERLAND 29.01.2011 CZECH REPUBLIC 01.09.2014

GRAND DUCHY OF 01.06.2011 NORWAY 01.01.2015

FRANCE 01.07.2011 AUSTRIA 01.07.2015

DENMARK 01.05.2011 CANADA 01.08.2015

REPUBLIC OF KOREA 01.11.2011 AUSTRALIA 01.01.2016

NETHERLANDS 01.12.2011 JAPAN 01.10.2016

HUNGARY 01.04.2013 PORTUGAL 08.05.2017

With Singapore India has entered into Economic Development Agreement

Labour Law Reporter

1 Basic wages or basic pay Included Section 2(b)

2 Dearness Allowance Included Section 6 and para 29

3 Wages during rest or holiday Included Being contract of employment

4 Special pay or special allowance Included

5 Wages during leave Included Being contract of employment

Labour Law Reporter

6 Cash value of food concession Included (from basic Para 29

7 Free/food tiffin allowance Included

8 City compensatory allowance Included

9 Retaining allowance / Included Sec. 6 and para 29

10 Maternity Leave salary Included Since wages on leave

Canteen Allowance Included

Labour Law Reporter

12 Educational allowance Included

14 Lay off compensation Included

15 Medical/Sickness allowance Included unless paid Medical/Sickness

16 Ex-gratia adhoc payment paid every Included

Labour Law Reporter

17 House Rent Allowance Excluded

18 Overtime allowance Excluded Sec.2(b)(ii)

20 Statutory Bonus Excluded Sec.2(b)(ii)

Manipal Academy of Higher