Explanation

Medical Bonus is confinement expenses payable by the employer to the woman employee if pre and post confinement care is not provided by the employer. The Medical Bonus is payable at the Rs. 3500 per confinement upto a maximum of 2 confinements. (It is unclear from law if provision of medical insurance is construed as provision of pre and post confinement care. Hence it is better to make payment of Medical Bonus; Medical bonus is payable once per confinement)

Section/Article

Section 8 of The Maternity Benefit Act, 1961 Every woman entitled to maternity benefit under this Act shall also be entitled to receive from her employer a medical bonus of twenty-five rupees, if no pre-natal confinement and post-natal care is provided for by the employer free of charge. Notification dated 19.12.2011 increased the limit to Rs. 3500

Explanation

Basic Wages is not defined under Minimum Wages Act. However \\\"wages\\\" means all remuneration, capable of being expressed in terms of money and includes house rent allowance], but does not include any other amenity provided by employer, employer contribution to PF, any travelling concession or any gratuity payable.

Section/Article

Wages is defined under Section 2(h) \"wages\" means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, 1*[and includes house rent allowance], but does not include-- (i) the value of-- (a) any house-accommodation, supply of light, water, medical attendance, or (b) any other amenity or any service excluded by general or special order of the appropriate Government; (ii) any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance; (iii) any travelling allowance or the value of any travelling concession; (iv) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or (v) any gratuity payable on discharge

Explanation

As per case law Airfreight Ltd. vs State Of Karnataka & Ors. on 4 August, 1999 “If any establishment has been paying wages to employees after splitting the gross salary in to basic + HRA+ Conveyance+ etc …., and whereas the sum of these heads make equal to or more than minimum wage fixed by the government, the employer is said to comply with the requirements under the Minimum Wages Act” This ruling has been interpreted as a licence to split the total salary into components like HRA, Conveyance etc which do not form part of statutory salary

Explanation

Factory is any premises where 20 or more workers are employed to carry out a manufacturing process with the aid of power or where 40 or more workers are employed to carry out a manufacturing process without the aid of power. Government has also made this act applicable to power looms, saw mills, certain industries which use hazardous chemicals, and certain processes carried out using flammable solvents by publishing a notification, even if the number of workers employed is less than 10.