All employees who draw a salary of INR 21,000 or less, per month are eligible for payment of Bonus under the Act, irrespective of their designation[s].
The Payment of Bonus Act, 1965 provides for the payment of bonus to persons employed in certain establishments, employing 20 or more persons, on the basis of profits or on the basis of production or productivity and matters connected there with.
The minimum bonus of 8.33% is payable by every industry and establishment under section 10 of the Act. The maximum bonus including productivity linked bonus that can be paid in any accounting year shall not exceed 20% of the salary/wage of an employee under the section 31 A of the Act.
Salary as defined under Section 2 (22) of the Payment of Bonus Act is as follows:
"salary or wage" under this Act means all remuneration (other than remuneration in respect of overtime 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 time 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.
So the person mentioned above is not covered under the employees who are to be paid bonus under the Act. Remember it is not just Basic + DA but all monetary benefits received under various slots except the exceptions mentioned, which are to be taken into account while calculating the term salary/wages.
Thanks and Regards
26th November 2018 From India, Hyderabad