Question

Which of the following is not included in the definition of ``wages'' under the Code on Wages, 2019?

• A. Bonus payable under any law
• B. Basic pay
• C. Dearness allowance
• D. Retaining allowance

Hint:

Core Formula under the Code on Wages: \[ \text{Wages} = \text{Basic Pay} + \text{DA} + \text{Retaining Allowance} \] Bonus, HRA, gratuity, and employer PF contributions are generally excluded.

Answer 1

The Correct Option is A

Concept: The Code on Wages, 2019 consolidated multiple labour laws into a single comprehensive legislation. One of its most important features is the introduction of a uniform definition of wages applicable across various labour regulations.

Step 1: Understand the importance of the definition. The definition of wages affects:

• Minimum wage calculations.

• Social security benefits.

• Compensation determinations.

• Labour welfare schemes.
Therefore, the legislature carefully specified which components are included and excluded.

Step 2: Identify the components included in wages. The Code specifically includes:

• Basic Pay

• Dearness Allowance (DA)

• Retaining Allowance
These constitute the core components of wages.

Step 3: Examine the exclusions. Several payments are excluded from the definition, including:

• Statutory bonus.

• House Rent Allowance (HRA).

• Overtime payments.

• Employer contributions to provident funds.

• Gratuity.
Bonus payable under any law falls within these exclusions.

Step 4: Match with the options. Among the given choices, only Bonus payable under any law is excluded from the statutory definition of wages.

Conclusion: Hence, Option (A) is the correct answer.