Question

'Wages' under Workmen's Compensation Act

• A. Includes any privilege or benefit which is capable of being estimated in money
• B. Does not include any privilege or benefit which is capable of being estimated in money
• C. Includes any privilege or benefit which is not capable of being estimated in money
• D. None of the above

Hint:

For calculating compensation under employee welfare laws, the definition of 'wages' is often broad and includes not just the basic pay but also various allowances and benefits that have a monetary value.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
The question asks about the definition of 'wages' under the Workmen's Compensation Act, 1923 (now known as the Employee's Compensation Act, 1923). The amount of compensation payable under the Act is calculated based on the workman's wages, so this definition is crucial.
Step 2: Detailed Explanation:
Section 2(1)(m) of the Workmen's Compensation Act defines "wages". The definition is inclusive. It states that "wages" includes any privilege or benefit which is capable of being estimated in money, other than certain specified exclusions like travelling allowance or employer's contribution to a pension fund.
The key part of this definition for the purpose of the question is that it explicitly includes any privilege or benefit that can be monetized (i.e., is capable of being estimated in money). For example, the monetary value of free housing provided by the employer could be included in wages for calculating compensation.
- Option (A) correctly reflects this inclusive part of the definition.
- Option (B) is the direct opposite and is incorrect.
- Option (C) is incorrect because a benefit that cannot be estimated in money cannot be part of the wage calculation.
Step 3: Final Answer:
The definition of 'wages' under the Workmen's Compensation Act, 1923, specifically includes privileges or benefits that can be estimated in money. Therefore, option (A) is correct.