Dear Vishwanath,
I would like to request you to go through the definition of the term " Salary or Wage " as defined u/s 2(21) of the Payment of Bonus Act,1965. Legally speaking, there is no difference between salary and wage. Salary is a periodical payment while wage is generally paid for day although the periodicity of payment varies.
In order to bring clarity of understanding, let me quote the observation of the Bonus Commission in its report at para 12.4 as follows: " Having considered the various views, we are of the opinion that the distinction between basic wages and dearness allowance for the purpose of expressing the bonus quantum should be done away with and that bonus should be related to wages and dearness allowance taken together."
Therefore, up on a careful analysis, salary and wages under the PB Act,1965 primarily mean:
1) all remuneration ( except O.T allowance )
2) capable of being expressed in terms of money
3) payable for work done
4) if terms of employment express or implied were fulfilled and
(a) includes (i) dearness allowance (ii) free food allowance or (iii) food given in lieu of whole or part of salary or wages but
(b) does not include any other allowance and other six items mentioned in the definition.