There has been an amendment in payment of bonus act by an ordinance issued in 2007 which mandates an organisation to give bonus to employees drawing wages or salary upto rs. 10000.
1) Please let me know if the 'wages' or 'salary' refered to in the act means basic salary or gross salary.
2) My friend is having a problem in getting his bonus because his company is saying the act refers to gross salary(and his is greater than 10000) while i have seen companies handing out bonus on basic salary.
3) Is there any govt. document my friend can show to his company to show that the act refers to basic salary.What can he do?
please guide.
Nimish

For Bonus purpose - definition of salary/wages includes following factors and not only Basic+DA, so please be aware it is not counted only on Basic and DA.
21)
"salary or wage" means all remuneration (other than remuneration in respect of over-time work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment and includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living), but does not include-

(i)

any other allowance which the employee is for the time being entitled to;

(ii)

the value of any house accommodation or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles;

(iii)

any travelling concession;

(iv)

any bonus (including incentive, production and attendance bonus);

(v)

any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the being in force;

(vi)

any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him;

(vii)

any commission payable to the employee.
Rasheed