CURRENT  TRENDS  IN  COMPENSATION  

The pay structure of a company based on several factors like as labour market conditions, company's paying ability and legal provisions:

Wages

Different Acts include different items under wages, though all of the Acts involve basic wage & dearness allowance under the term wages. In the Workmen's Compensation Act, 1923, "wages for leave period, , overtime pay, holiday pay ,bonus, attendance bonus, and good conduct bonus" form part of wages.

However, the following kinds of remuneration, if paid, do not amount to wages underneath any particular of the Acts:

a)  Bonus or other payments kinds under a profit-sharing system which do not form a part of contract of employ.

b) Value of any house accommodation, water, supply of light, travelling allowance, medical attendance, or payment in lieu therefore any other concession.

c)  Any amount paid to defray special expenses entailed by the behaviour of the employment of a workman.

d)  Any contribution to provident fund, pension, or a system of social security and social insurance benefits.

e)  Any other service or amenity excluded from the computation of wages by special or general order of suitable governmental authority.

The term 'Allowances' involve amounts paid additionally to wages over a period of time involving holiday pay, bonus, overtime pay, social security benefit, etc.