Basic dearness allowance, that is to say, all cash payment by whatever name called, paid to an employee on account of a rise in the cost of living. However, many allowances like family allowance, house rent allowance, ad-hoc, and tiffin allowance have been specifically held as not to be in the nature of dearness allowance.
The Bombay High Court has held that retention allowance paid to seasonal employees will be considered wages under the Act. Therefore, Basic + DA + RA is considered wage for the bonus.