Is the Payment of Bonus Act Relevant for Consultancy Firms? Seeking Clarification

Hi All,

I would like to know if The Payment of Bonus Act is applicable to the service industry (consultancy). In my last company, it was a part of my CTC (let's assume X), and the calculation was done based on the company balance scorecard (let's assume Y% here). Hence, the actual amount paid was (Y% of X). Please clarify in this regard.

Thanks & Regards

Under section 1(3), every establishment in which 20 people are employed must pay a bonus, whether it is a manufacturing or service industry.