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What is Meaning of Remuneration.

The word remuneration finds its origin in the Latin term, ‘remuneration,’ meaning ‘reward’ or ‘repayment.’ If one look for general meaning of remuneration it means the money paid for work or a service.

Under the EQUAL REMUNERATION ACT, 1976[1] of section 2(g) “remuneration” means the basic wage or salary, and any additional emoluments whatsoever payable, either in cash or in kind, to a person employed in respect of employment or work done in such employment, if the terms of the contract of employment, express or implied, were fulfilled.

When one looks at the definition, it is evident that the term remuneration has a broader sense than phrases like pay or earnings. It represents all of the methods in which an employee is compensated for labor and his or her role in the task done by him or her. So, an employee's remuneration comprises not only his base income, but also any bonuses, commission payments, overtime pay, or other financial perks that he receives from his employer. It should also be emphasized that this additional emolument can take the shape of monetary or non-monetary incentives and allowances such as medical plans, housing, meals, or a company automobile, among other things.

According to the rules of the employment contract, the employer typically pays this compensation afterward. As a result, it can be awarded based on the service provided and the terms chosen and accepted by the parties.

Section 219 of the Contracts Act provides that an agent has the right to obtain the agreed remuneration or, in the absence of an agreement, a reasonable remuneration for delivering services to the principal that are neither voluntary nor gratuitous. He becomes qualified to get the remuneration as soon as the work he conducted is completed.


[1] Act 25 of 1976 amended by Act 49 of 1987                                                                                                

                                                                               URMILA

3rd year B.A.LLB, Army Institute of Law

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