Payment of Bonus Act 1965 describes the payment of maximum of bonus is 20% of wage & Minimum bonus is 8.33% of wage. it was clarify in sections as follows:
Sec-10 : Minimum Bonus - 8.33% of wage
Sec-11: Maximum Bonus - 20% of wage
As per ammendment for Payment of Bonus act on 27th October 2007 Sec-12 (Caliculation of bonus means wage describes 3500/-)
and Sec-2 clause 13 definition of "employee" means any person (other than an apprentice) employed on salary or wage not exeeding 10,000/- per mensem.
Mr.A earns a wage of 8500/- (Basic) per month and allowances 1000/- he will get the bonus as follows:
If Basic+DA is less than 10,000/- then for calculation of Bonus it will be taken as 3500/- only.
if bonus rate fixed to employee as 20% :
Bonus = 3500 X 12 X 20% = 8400/-
Exgratia = 5000 X 12 X 20% = 12,000/-
Total = 20,400/-
if bonus rate fixed to employee as 8.33% :
Bonus = 8500 X 12 X 8.33% = 8400+96/- we can show in calculation as
as Bonus =8400 + Exgratia = 96/-
Total = 8,496/-
You may clarify the doubt in payment of Bonus.
9903599794[/quote] 17th September 2008 From India, Hyderabad