Wages Counts as wages under Sec 2(y) 21 01 Basic Pay / Basic Salary 02 Dearness Allowance (DA) 03 Retaining Allowance 04 Special Allowance 05 Flexible Benefit Plan (FBP) — cash portion 06 Other Allowance / Supplementary Allowance 07 Skill Allowance / Technical Allowance 08 Management Allowance 09 City Compensatory Allowance (CCA) 10 Attendance Allowance / Incentive 11 Education Allowance (flat) 12 Medical Allowance (flat) 13 Non-Practising Allowance (NPA) 14 Hardship / Hazard / Dust / Heat Allowance 15 Shift Allowance / Night Shift Allowance 16 Leave Encashment (monthly / during service) 17 Fixed Performance Pay / Guaranteed Bonus 18 Joining Bonus / Sign-on Bonus 19 Retention Bonus (service-linked) 20 Personal Pay / Fixed Personal Pay (FPP) 63 Underground Allowance (mining)
Excluded Carved out by a Sec 2(y) clause 34 21 House Rent Allowance (HRA) (f) 22 Conveyance Allowance / Transport Allowance (d) 23 Leave Travel Allowance (LTA/LTC) (d) 24 Overtime Allowance (h) 25 Statutory Bonus (a) 26 Sales Commission (i) 27 Employer PF Contribution (c) 28 Employer NPS Contribution (c) 29 Superannuation Fund (Employer) (c) 30 Gratuity (j) 31 Retrenchment Compensation / VRS / Severance (k) 32 Leave Encashment on Exit (k) 33 Award / Settlement / Court Order Payment (g) 34 Company-Provided Accommodation (b) 35 Company Car / Car Lease (employer-provided) (b) 36 Canteen Subsidy / Free Meals (in kind) (b) 37 Meal Coupons / Vouchers (b) 38 Company Bus / Cab / Pick-and-Drop (b) 39 Group Health Insurance / Mediclaim (employer-paid) (b) 40 Group Term Life / GPA / EDLI (employer-paid) (b/c) 41 Telephone / Mobile Reimbursement (e) 42 Internet / Broadband Reimbursement (e) 43 Uniform / Attire Allowance (with policy) (e) 44 Washing / Laundry Allowance (with policy) (e) 45 Meal / Food Allowance (role-based) (e) 46 Fuel / Petrol Reimbursement (with bills) (d/e) 47 Safety Shoe / PPE / Safety Equipment Allowance (e) 48 Tool / Equipment Allowance (bill-backed) (e) 49 Books & Periodicals / Research Allowance (e) 50 Daily Allowance / Per Diem (tour) (e) 51 Driver Salary Reimbursement (e/b) 52 Relocation / Transfer Reimbursement (d/e) 53 Medical Reimbursement (bill-backed) (e/b) 54 Entertainment / Client Hospitality Reimbursement (e)
Grey Contested — depends on structure 10 55 Variable Pay / Performance Incentive (Maybe (a)/(i)) 56 Production Incentive / Piece-Rate Incentive (Maybe (i)) 57 Shift Allowance (per-shift-worked) (Maybe (e)) 58 Work-from-Home Allowance (Maybe (e)) 59 Site / Project / Deputation Allowance (Maybe (e)) 60 Field / Beat / Territory Allowance (per-visit) (Maybe (e)) 61 Flying Allowance / Flying Hour Pay (Maybe (e)) 62 Sea-going / Offshore Allowance (Maybe (e)) 64 Tip Pool / Service Charge Share (Unclear) 65 ESOP / RSU / SAR / Phantom Stock (Not in (a)–(k))
Non-cash Outside the wages calculation 3 66 ESIC Employer Contribution 67 Gratuity Provision (notional) (j) 68 ESOP Notional Value
Indicative classification for structuring discussions — not legal advice. Verify each head against the current notified position.Labourcodes360 · Labour Law & Statutory Compliance