Dear Seniors Pl guide me on what will be the definition of wage under the Payament of Bonus Act?? We have the following components Basic HRA Conveyance Allw. Special All. Pl reply??? Anupam
From India, Calcutta
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10From India, Calcutta
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"Salary or wage" means all remuneration (other than remuneration in respect of overtime work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment and includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living), but does not include:
(i) any other allowance to which the employee is entitled to at that time;
(ii) the value of any house accommodation or supply of light, water, medical attendance, or other amenity or of any service or of any concessional supply of food grains or other articles;
(iii) any traveling concession;
(iv) any bonus (including incentive, production, and attendance bonus);
(v) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the time being in force;
(vi) any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him;
(vii) any commission payable to the employee.
Explanation: Where an employee is given, in lieu of the whole or part of the salary or wage payable to him, a free food allowance or free food by his employer, such food allowance or the value of such food shall, for the purpose of this clause, be deemed to form part of the salary or wage of such employee.
From India, Bangalore
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(i) any other allowance to which the employee is entitled to at that time;
(ii) the value of any house accommodation or supply of light, water, medical attendance, or other amenity or of any service or of any concessional supply of food grains or other articles;
(iii) any traveling concession;
(iv) any bonus (including incentive, production, and attendance bonus);
(v) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the time being in force;
(vi) any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him;
(vii) any commission payable to the employee.
Explanation: Where an employee is given, in lieu of the whole or part of the salary or wage payable to him, a free food allowance or free food by his employer, such food allowance or the value of such food shall, for the purpose of this clause, be deemed to form part of the salary or wage of such employee.
From India, Bangalore
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I think most of the organisations are considering only total Basic + DA for the accounting year with ceiling amt of 3500 for calculation.
From India, Bangalore
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From India, Bangalore
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During computation of bonus, consideration of basic salary+DA/VDA or minimum wage of the state is the only factor to be considered. Any other allowances such as HRA, food concession, OT, etc., are not to be taken into account.
Thanks & regards,
Sumit Kumar Saxena
9899669071, 0120-4131277
From India, Ghaziabad
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Thanks & regards,
Sumit Kumar Saxena
9899669071, 0120-4131277
From India, Ghaziabad
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The Payment Of Bonus Act 1965-Update-02- 01.01.16-Wage - 21K- Min Bons 7K-01.04.14.pdf
Amendment to Payment of Bonus Act 2015.jpg