How can a person get bonus whose salay more than ₹21000

How can a person get bonus whose salay more than ₹21000

When the salary of the person exceeds Rs.21000-00 pm, automatically he goes out of the ambit of the definition of the term "employee" as defined u/s 2(13) of the Payment of Bonus Act,1965. Therefore, he is not entitled to statutory bonus.

Hi Mr Umakanthan.M
Then what about sec 12 of the payment of bonus act which says if salary is more than 21k then it will be assumed if his salary is 21k. It means if someone's salary is 50,000, even then he will be eligible for bonus at the rate of 21,000 salary.
correct me if I am wrong

Hi Mr Umakanthan.M
I feel if someone's total salary is 40k and his basic is 21k, even then he will be eligible for bonus and the bonus calculation will be at the rate of 7k.
correct me if I am wrong

Dear Sachin,
For determining applicability of the Act to a person employed, only his gross monthly salary should be taken into account. When the gross monthly salary exceeds Rs. 21000/= he automatically goes out of the ambit of the definition of employee for the purpose of payment of bonus under the PBA, 1965. The break up of " salary or wage " so defined under the Act is to be undertaken for the purpose of calculation of bonus only and not for applicability of the Act as a whole.
Can you please read section 12 of the Act once again more carefully? It only says that when the salary or wage exceeds Rs.7000/=, it has to be treated as Rs. 7000/= or the statutory minimum wages whichever is higher.