1.

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

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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