| Component | Treatment | Control note |
|---|---|---|
| Basic pay | Included | Core wage component |
| Dearness allowance | Included | Core wage component |
| Retaining allowance | Included | Core wage component |
| Statutory bonus | Excluded subject to 50% add-back | Test aggregate exclusions |
| House rent allowance | Excluded subject to 50% add-back | Test aggregate exclusions |
| Overtime allowance | Excluded subject to 50% add-back | Separately test overtime compliance |
| Commission | Excluded subject to 50% add-back | Test nature and payroll coding |
| Employer PF contribution | Excluded subject to statutory wording | Do not net against employee wages |
| Conveyance allowance | Excluded subject to 50% add-back | Evidence business purpose where relevant |
| Special allowance | Classification depends on substance; 50% rule relevant | Avoid label-only structuring |
| Leave encashment | Not treated as an allowance in official FAQ | Test event and instrument |
| Gratuity | Excluded from wages definition | Separate statutory benefit |
| Retrenchment compensation | Excluded | Separate IR entitlement |
| Value of house accommodation/light/water/medical amenity | Excluded subject to wording | Check authorised exclusion |
| Remuneration in kind | May be included up to prescribed limit | Document valuation method |
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
This page reflects the published text; publication of a Code or Central Rule does not by itself establish its commencement date or applicability in every State.
- Official starting point
- www.labour.gov.in