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        Case ID :

        1984 (9) TMI 273 - SC - Indian Laws

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        Broad construction of 'wages' under ESI law brings multiple employment allowances within statutory coverage. The Supreme Court construed the definition of 'wages' under section 2(22) of the Employees State Insurance Act broadly and beneficially as part of a ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                            Broad construction of "wages" under ESI law brings multiple employment allowances within statutory coverage.

                            The Supreme Court construed the definition of "wages" under section 2(22) of the Employees State Insurance Act broadly and beneficially as part of a social welfare statute. Remuneration payable under the contract of employment, together with additional remuneration paid at intervals not exceeding two months, falls within the statutory meaning, subject only to the express exclusions in the provision. On that construction, house rent allowance, night shift allowance, heat, gas and dust allowance, and incentive allowance were treated as wages, and the special leave petition failed.




                            Issues: Whether house rent allowance, night shift allowance, heat, gas and dust allowance, and incentive allowance fall within the definition of "wages" under section 2(22) of the Employees State Insurance Act.

                            Analysis: The definition of wages was construed as a wide and beneficial one in the context of a social welfare enactment. Remuneration paid or payable under the contract of employment, as well as additional remuneration paid at intervals not exceeding two months, was held to be within the statutory meaning. The exclusionary clauses were treated as specific exceptions, and no basis was found to exclude the allowances in question from the inclusive sweep of the definition.

                            Conclusion: The allowances in question are wages within section 2(22) of the Employees State Insurance Act, and the special leave petition fails.

                            Ratio Decidendi: Under section 2(22) of the Employees State Insurance Act, remuneration paid as part of employment, and also additional remuneration paid at intervals not exceeding two months, constitutes wages, subject only to the express exclusions in the provision.


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                            ActsIncome Tax
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