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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 period

This 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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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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