Labour Codes - Social Secutiry - Impact on determination of Gratuity
SOCIAL SECURITY CODE – IMPACT OF WAGE DEFINITION ON GRATUITY BENEFITS Standardisation of “Wages” Definition”: Hitherto, the definition of “Wages” were quite diverse in various labour legislation for the purpose of calculation of the same terms – wages / basic wages etc. This created practical challenges while interpretation by regulators, courts and administration of salary structures as well as computation and payments of social security benefits, contributions and deductions to be made. The new unified definition of “Wages” introduced in the labour codes broadly harmonise and simplify the term and to an extent, the foundation of calculation of quantum and eligibility of various social security related benefits. Social Security Code: Impact of new definition The new definition now has three parts to it - an inclusion part, specified exclusions and conditions which limit the quantum of exclusions. It is an inclusive definition and...