Applicability of payment of Bonus Act, 1965

[Sanjay Lakhotia]

Hi - If any organization provides salary in following head , basic, HRA and special allowance. Special allowance paid to all employees. Should we include basic + special allowance under wages to check eligibility of applicability of bonus act.

For example one person getting 15000 as basic and 10000 as special allowance per month, total 25000 , bonus act is applicable to him or not?

AI Summary

Clarification on Bonus Act: Basic Pay Included, Special Allowance Depends on Nature; Consult Recent Legal Interpretations. A query was raised about whether to include basic pay and special allowance when determining eligibility under the Payment of Bonus Act, 1965. An example cited involves an employee earning a total of 25,000 per month, with 15,000 as basic and 10,000 as special allowance. The response indicated that the Act's applicability depends on whether the salary falls within the prescribed limits, and generally, 'wages' include basic pay and dearness allowance. The inclusion of special allowance depends on its nature, and consulting recent legal interpretations or a labor law expert is advised.