Wages – Section 2(rr)

Wages – Section 2(rr)

Introductory of  Wages – Section 2RrSection 2Rr

Traditionally, the word “wages” means an amount paid periodically – hourly, daily weekly, monthly etc. to a worker by the Employer for the work done by him (for the Employer). But not accepting this traditional meaning, the legislature has given an artificial meaning to the word “wages”. It is now so skillfully defined that the word “wages” connotes and denotes. As a result, the term includes much more than what is traditionally included in the word wages. The omnibus definition takes into its fold not only the actual wages {or remuneration) but also the “allowances”.
As for the “allowance”, it may be of interest to know that after the Second World War living became very costly (dear). In order to compensate this dearness (costliness), the workers were began to be paid “Dearness Allowance”, nicknamed as “DA”. This DA was paid along with wages (or remuneration) in the fond hope that one day the cost of living will fall down and so the DA will disappear. But contrary to the popular belief, the cost of living never came down and so DA, never disappeared but came to stay permanently. Earlier DA was paid to compensate higher cost, of living. The cost of living then included only the food and shelter which can be said to be the necessities of life. Nevertheless the concept of “Necessities of Life” has also radically changed. Now not only the food and shelter are included but also included are several other items needed in living the life. Therefore, in the D.A. many more allowances have come to be included. So in a pay-packet of a workman are included (1) the wages or remuneration (2) D.A and (3) other allowances. The legislature has given recognition to this aspect of changing the concept of wages in the present definition and accordingly, we have the definition.
It will be seen that the definition gives meaning to wages in two parts:
1. What actually are the “wages” and
2. Includes in it are certain allowances as wages. Indeed, payments like Bonus, P.P., Gratuity are excluded and that really renders the definition in parts.
3. All remuneration (capable of being expressed in terms of money) payable to a workman for the work done (for the employer). This really is the denotation of the term wages or what it denotes.
4. Certain allowances and amenities are included. In fact, that is the extended connotation of the word wages and
5. Excludes three payments – Bonus, P.P. or the like and Gratuity from the term “wages.”