Judgment :-

Koshy, J.

The question involved in this case is whether incentive payments voluntarily paid by the employer at three months’ interval is wages as defined under section 2 (22) of the Employees’ State Insurance Act, 1948 (hereinafter referred to as ‘the Act’). The period for which the demand was raised is 1-10-1989 to 31-3-1992. The employees’ Insurance court held that the above payments are not wages under section 2 (22) of the Act and the demands were set aside. ESI Corporation questions the same in this appeal. Wages are defined under section 2 (22) of the Act as follows:

“(22) ‘wages’ means all remuneration paid or payable in cash to an employee, if the terms of the contract of employment express or implied, were fulfilled land includes any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not illegal or lay-off and other additional remuneration, if any, paid at intervals not exceeding two months, but does not include—

(a) any contribution paid by the employer to any pension fund or provident fund, or under this Act,

(b) any traveling allowance or the value of any traveling concession;

(c) any sum paid to the person employed to d