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Government tells businesses paying wages is not CSR, giving one-time relief is
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NEW DELHI: Businesses cannot set off their wage bill during the ongoing lockdown period against their statutory obligation of spending 2% of profits on charity, but paying one off ex-gratia payment to workers as relief during the pandemic could be.
In a clarification on corporate social responsibility (CSR) spending signed on Friday, the ministry of corporate affairs has said payment of salary or wages in normal circumstances is a contractual and statutory obligation of the company.
Similarly, payment of salary or wages to employees and workers even during the lockdown period is a moral obligation of the employers, as they have no alternative source of employment or livelihood during this period.
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