The four labour codes subsume 29 legislations. The purpose of each of these regulations was varied and hence the definition of wages under many of these regulations was also different. The codes are aimed at unification, simplification, and consolidation of these regulations, and hence have a common approach, which includes having a uniform definition of wages across all these regulations.
This is a significant change, and while the intent of having a singular approach is welcome, it would mean that the industry needs to analyse and understand the impact of the same under each of these subsumed legislations.
The term “wages” as defined under the codes today, envisages that “all remuneration” provided to the employee is to be considered, and is subject to certain specified exclusions, such as statutory bonus, conveyance allowance, travel concessions, housing benefit, or house rent allowance, contributions to PF and pensions, overtime, commission, etc.
Source: Business Today
