wages/Salary for Bonus Act

Can anyone let me know the wages/salary as per Bonus Act. As per recent amendment in Act wherein it has mentioned that employees drawing salary more than Rs. 21000/- will not be eligible for Bonus. 
my query is that suppose company in paying salary in following components : Basic salary + HRA + DA + other allowance, so whether HRA and other allowance will be considered while determining salary limit for eligibility for Bonus.

Regards
Ajay Kumar
Replies (6)

As per THE PAYMENT OF BONUS ACT, 1965, Employee means any person(other than an apprentice) employed-On a salary or wage not exceeding Rs. 10,000 per mensem in any industry,

Salary or wage- means all remuneration(other than remuneration for overtime) in terms of money, which would, be payable to an employee in respect his employment or of work done, dearness allowance, i.e., all cash payments, all free food allowance or the value of the free food given by the employer, retaining allowance, all lay-off compensation, city compensation allowance subject to a contract to the contrary.But the term excludes the value of any house accoommodation or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of foodgrains or other articles and many more. If u want more explanation go and section 2(21) of the payment of bonus act,1965.

thanks
it means if salary after considering HRA and other allowances is more than Rs. 21000/- then employee is not entitled for bonuswill be considered for determining
it means if salary after considering HRA and other allowances is more than Rs. 21000/- then employee is not entitled for bonus

Total salary less any exceptional allowance under section 2(21) is not exceeding Rs. 21,000 is eligible for bonus

Hi Ajay Kumar

As per the Payment of Bonus(Amendment) Act , the limit of salary has been extended to 21000 for claiming bonus. But salary means Basic + DA(Dearness Allowance) + Free food or food allowance given by employer(if in lieu of whole or part of the salary). 

Dear all

agree with above

ramanuj

 

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