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CMA Intermediate · Business Laws and Ethics · The Code on Wages, 2019

Which one of the following statements about the definition of 'wages' under the Code on Wages, 2019 is correct?

Commission payable and remuneration for overtime work are excluded from wages under the Code on Wages, 2019. Gratuity and employer's provident fund contributions are also excluded, while retaining allowance is expressly included in wages.

  1. AGratuity payable on termination of employment is included in wages
  2. BEmployer's contribution to a provident fund is included in wages
  3. CRetaining allowance is excluded from wages
  4. DCommission payable and remuneration for overtime work are excluded from wagesCorrect

Explanation

Commission payable and overtime remuneration are among the listed exclusions from wages. Gratuity and the employer's contribution to a provident or pension fund are also excluded, so the first two statements are wrong. Retaining allowance is specifically included, so the third statement is wrong.

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