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As per the Bonus Act, can anyone please explain the 'salary/wages' as per the bonus act?
If an employee is having a monthly salary of 25000 INR which is split into various allowances like BASIC, DA, fuel allowances, HRA etc., is he eligible for bonus?
What is the correct interpretation of 'salary/wages' as per the bonus act? Though in section 2(21) it is explained, it is a bit unclear for me.
Please support.

From India, Kottayam
Dear Friend,
In the definition of salary or wages as given in section 2(21) of POB Act, it is clearly mentioned that "salary or wages " means all remuneration (including D.A / cost of living) but does not include any other allowance which the employee is for the time being entitled to.
What does it mean? Where is the ambiguity?
There is no ambiguity. Salary means basic wages including DA excluding all allowances.

From India, Mumbai
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