Sunday, August 10, 2008

WAGES DEFINED (Employment Act 1955)

Section 2

“wages” means basic wages and all other payments in cash payable to an employee for work done in respect of his contract of service but does not include –
(a) the value of any house accommodation or the supply of any food, fuel, light, or water or medical attendance, or of any approved amenity or approved services;
(b) any contribution paid by the employer on his own account to any pension fund, provident fund, superannution scheme, retrenchment, termination , lay-off or retirement scheme, thrift scheme or any other fund or any other fund or scheme established for the benefit or welfare of the employee;
(c) any traveling allowance or the value of any traveling concession;
(d) any sum payable to the employee to defray special expenses entailed on him by the nature of his employment;
(e) any gratuity payable on discharge or retirement; or
(f) any annual bonus or any part of any annual bonus;

First Schedule

3. For the purpose of this Schedule “wages” means wages as defined in section 2, but shall not include any payment by way of commission, subsistence allowance and overtime payment.

Section 31 Priority of wages

(2) In this section, except for the second proviso, “wages” includes termination and lay-off benefits, annual leave pay, sick leave pay, public holiday pay and maternity allowance.

Section 60I Interpretation

(1) for the purposes of this Part and Part IX
(a) “ordinary rate of pay” means wages as defined in section 2,whether calculated by the month, the week, the day, the hour, or by piece rate, or otherwise, which an employee is entitled to received under the terms of his contract of service for the normal hours of work for one day, but does not include any payment made under an approved incentive payment scheme or any payment for work done on a rest day or on any gazetted public holiday granted by the employer under the contract of service or any day substituted for the gazetted public holiday


Regulation 6 (2)

For the purposes of this regulation “wages” shall have the meaning assigned thereto under section 2(1) of the Act and “ a day’s wages” shall be computed in such a manner so as to give the employee his average true day’s wages calculated over period of twelve completed months’ service immediately proceding the relevant date.

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