New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    What components may be included in the minimum rate of

    wages fixed or revised by the appropriate Government under section 8 of the Code on Wages?
    A Only a basic rate of wages Correct Answer Incorrect Answer
    B A basic rate of wages with a cost of living allowance and cash value of concessions, or an all-inclusive rate Correct Answer Incorrect Answer
    C A basic rate of wages with an additional bonus Correct Answer Incorrect Answer
    D Only a cost of living allowance without a basic rate of wages Correct Answer Incorrect Answer
    E An all-inclusive rate with no adjustments for cost of living or concessions Correct Answer Incorrect Answer

    Solution

    Section 7 Components of minimum wages: (1) Any minimum rate of wages fixed or revised by the appropriate Government under section 8 may consist of–– (a) a basic rate of wages and an allowance at a rate to be adjusted, at such intervals and in such manner as the appropriate Government may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as "cost of living allowance"); or (b) a basic rate of wages with or without the cost of living allowance, and the cash value of the concessions in respect of supplies of essential commodities at concession rates, where so authorised; or (c) an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any.

    Practice Next

    Relevant for Exams: