Under Section 21 of The Payment of Bonus Act. The definition of wages includes Basic DA and all other payments in cash.
In the same section 21(i) says does not include all other allowances received at that time.
My question is if an employee whose monthly Basic + DA is under 21k but including all other allowances is more than 22k will be eligible for a bonus under the act or not.
From India, Indore
In the same section 21(i) says does not include all other allowances received at that time.
My question is if an employee whose monthly Basic + DA is under 21k but including all other allowances is more than 22k will be eligible for a bonus under the act or not.
From India, Indore
Definition of wages under section 2(21) ( not section 21) says that wages means all remuneration capable of being expressed in terms of money including dearness allowance. The definition excludes contributions like PF, travel concessions, allowances like value of accommodation and other amenities provided, commission etc and any other allowance which the employee is for the time being entitled. This is part of salary but it is not as per contract of employment. For example, an employee has been asked to take charge of a branch temporarily and is allowed a deputation allowance. This is part of salary but will be withdrawn when he is asked to return to the original post. This kind of allowances are the one mentioned under 2(21)(i) of the Payment of Bonus Act. As such, if the gross salary excluding the temporary allowances is more than Rs 21000, then he will be out of Bonus purview.
From India, Kannur
4248From India, Kannur
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