Question

Under the Code on Social Security, 2020, if the allowances paid to an employee exceed 50% of the total remuneration, the excess amount is treated as:

1.
Bonus
2.
Wages
3.
Ex-gratia payment
4.
Gratuity
Answer (Detailed Solution Below)

Option 2 : Wages

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Detailed Solution

सही उत्तर Wages है।

Key Points

Under the Code, where allowances exceed 50% of the total remuneration, the excess is deemed to be wages for contribution purposes.

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More Domain-Specific Questions

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Question:

Under the Code on Social Security, 2020, if the allowances paid to an employee exceed 50% of the total remuneration, the excess amount is treated as:

1.
Bonus
2.
Wages
3.
Ex-gratia payment
4.
Gratuity

Correct Answer: Wages

Under the Code, where allowances exceed 50% of the total remuneration, the excess is deemed to be wages for contribution purposes.

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