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Which among the following comes under basic wages?(a) Cash value of any food concession(b) Any dearness allowance(c) House rent allowance, overtime allowance, bonus, presents(d) Pay for a standard work periodThis question was addressed to me at a job interview.I want to ask this question from Labour Rates for Workers topic in chapter Schedule of Rates Metric and F.B of Civil Engineering Drawing |
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Answer» CORRECT choice is (d) Pay for a standard work period The explanation: Basic wages have been defined to mean all cash emoluments, EXCEPT: -Cash value of any food concession; -Any dearness allowance; -House rent allowance, overtime allowance, BONUS, PRESENTS and -Commission or any other similar allowance. The concept of basic wages on which PF contribution is to be calculated has always been a debatable issue. The Supreme Court has laid down two tests to determine whether a component is included in the definition of basic wages or not. These are test of universality and test of CONTINGENCY. |
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