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Under Section 2(zq) of the Industrial Relations Code, 2020 (which replaced the Industrial Disputes Act, 1947), ‘wages’ includes 1. Gratuity payable on the termination of employment 2. Basic pay 3.…

Question and options

Under Section 2(zq) of the Industrial Relations Code, 2020 (which replaced the Industrial Disputes Act, 1947), ‘wages’ includes
1. Gratuity payable on the termination of employment
2. Basic pay
3. Dearness allowance
4. Retaining allowance
  1. Only 1 and 2
  2. Only 2, 3 and 4
  3. Only 1 and 4
  4. Only 1, 2 and 4

Answer and explanation

Correct answer: B - Only 2, 3 and 4
Under Section 2(zq) of the Industrial Relations Code, 2020 (in force from 21 November 2025, replacing the Industrial Disputes Act, 1947), 'wages' expressly includes (i) basic pay, (ii) dearness allowance, and (iii) retaining allowance, if any, while sub-clause (j) unconditionally excludes any gratuity payable on the termination of employment. Therefore, only 2, 3 and 4 are included.

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