Is the Bonus Act Based on Gross Salary or Just Basic Plus DA? Seeking Clarity!

I understand from the many posts here that bonus calculation is on basic plus DA. Can someone confirm the applicability of the Bonus Act? I know it's applicable to more employees earning less than 15,000. But is that 15,000 based on gross or on basic plus DA again?

Generally, the salary applicable for a bonus is basic + DA (for both $15,000 & $3,500).

Regards,
Abbas. P.S.

An employee drawing wages up to Rs. 10,000/- per month is only eligible for a bonus under the Payment of Bonus Act, 1961. The bonus is to be calculated only on wages not exceeding Rs. 3,500/- per month. For the purpose of wages, only Basic + DA is to be taken into account.

Regards,
B. Saikumar
Mumbai

Bonus Act 1961 Ceiling and Calculation

The ceiling limit is ₹10,000 for the Bonus Act 1961. Wages for calculation are up to ₹3,500.

Minimum and Maximum Bonus Payable

- Minimum Bonus Payable - Section 10: 8.33%
- Maximum Bonus Payable - Section 11: 20%

Please let me know if you need any further assistance.