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Can travel allowances be deducted u/s 2 of minimum wages act


30-Jan-2023 (In Labour & Service Law)
Is fixed conveyance charges paid to all employees a part of wages or can it be deducted to arrive at the wages for the purpose of coverage under the minimum wages act section 2 .As per the section traveling allowance or travel concesation is to be deducted .
Answers (1)

Answer #1
767 votes
If the conveyance charges is a fix component of the salary and is shown in the break up of CTC (Cost to Company) then it can't be excluded from the wages to determine the actual wages as per the minimum wages act.
The traveling allowances and travel compensation are over and above what one gets as his or her salary or wages as per the trip which he or she undertakes for the job in professional capacity so it do not get counted at the time of determining the wages as per the minimum wages act.

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