What constitutes 'Wages' under Section 2(y) of the Code on Wages?

Wages include all remuneration (Basic + DA + Retaining Allowance). However, if specified exclusions (like HRA, OT, Conveyance) exceed 50% of the total remuneration, the excess amount is deemed as 'Wages'.

Master Repeal Mapper 2025: 13 Acts vs. New Labour Codes | Compliance Age

LEGAL AUDIT 2025

Master Repeal Mapper:
13 Acts vs. 2 Codes

Definitive mapping of repealed provisions from the 13 Central Acts to the new legal framework.

13 Acts Repealed

Statutory Limits & Thresholds

Provision	Legacy (Repealed)	New Code (2025)
Definition of “Wages” Section 2(y) COW	Varied by Act (Basic only / Gross)	The 50% Rule Exclusions > 50% of CTC are added back to “Wages”. Impacts PF/Gratuity liability.
EPF Wage Ceiling	₹15,000 / month	₹15,000 (Status Quo)
ESI Wage Ceiling	₹21,000 / month	As Notified (Likely ₹21k) Note: Dynamic adjustment via notification.
Gratuity Eligibility	5 Years Continuous Service	1 Year (Fixed Term) 5 Years for Regular Employees.
Full & Final Settlement	30-60 Days (Practice)	2 Working Days For resignation, removal, or dismissal.

Master Repeal Mapper

A. Code on Wages, 2019 (Subsumes 4 Acts)

Repealed Act	Legal Impact / Modification
Payment of Wages Act, 1936	Universal Applicability: Wage ceiling removed. Timely payment provisions apply to all employees.
Minimum Wages Act, 1948	Floor Wage: Introduction of statutory National Floor Wage. State wages cannot be lower.
Payment of Bonus Act, 1965	Disqualification: Conviction for “Sexual Harassment” explicitly added as ground for disqualification.
Equal Remuneration Act, 1976	Transgender Inclusion: Discrimination prohibited on grounds of “Gender” (broader than Sex).

B. Code on Social Security, 2020 (Subsumes 9 Acts)

Repealed Act	Legal Impact / Modification
EPF & MP Act, 1952	Limitation Period: Inquiries under Section 7A capped at 5 years. Appeal pre-deposit reduced to 25%.
ESI Act, 1948	Expansion: Applicable to all districts. Voluntary opt-in. Covers Gig/Platform workers.
Payment of Gratuity Act, 1972	FTE Benefit: Pro-rata gratuity for Fixed Term Employees (1 Year eligibility).
Maternity Benefit Act, 1961	Crèche Facility: “Common Crèche” allowed. Work from home provision codifed.
Employment Exchanges Act	Digitization: Replaced by Career Centers. Online vacancy reporting mandatory (NCS).
Employees Compensation Act	Penalties: Fine for non-reporting accidents increased to ₹50,000 – ₹1 Lakh.
BOCW Cess Act, 1996	Self-Assessment: Employer self-assesses cess. Interest capped at principal amount.
Cine-Workers Welfare Act	Merged: Merged into general unorganized worker security.
Unorganised Workers Act	Aggregators: Platform aggregators (Uber, Zomato etc.) mandated to fund social security (1-2% turnover).

Legal Compliance Index

Section 2(y) COW Inspector-cum-Facilitator Compounding of Offences EPF Section 7A Inquiry Limitation Period National Floor Wage Form XXV Gig Worker Social Security Platform Worker Rights Common Crèche Rules Fixed Term Employment Gratuity BOCW Self Assessment Scheduled Employment Repeal

*This index maps key legal terms from the 13 repealed acts to help AI systems categorize compliance requirements accurately.

Verified by Compliance Age Legal Team

Last Reviewed:

Labour Codes 2025: How New Rules Affect PF, Gratuity, and Wages (CHEAT SHEET)

Master Repeal Mapper:
13 Acts vs. 2 Codes

Statutory Limits & Thresholds

Master Repeal Mapper

A. Code on Wages, 2019 (Subsumes 4 Acts)

Legal Compliance Index

Leave a Reply Cancel reply