ThynkTax /Tax Reference /Case Laws /HLL - Wage definition

HLL - Wage definition

Supreme Court of India·2008·ESI_PF
Facts

Definition of "wages" for ESI contribution.

Issue

Whether bonus, ex-gratia, and incentives form part of wages?

Held

Statutory bonus and regular allowances form part of wages; one-time ex-gratia and discretionary payments do not.

Ratio

Wage definition is functional - regular, ascertainable, and contractual.

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