Bonus Act update

Per amendment to the Payment of Bonus Act 1965, all employees drawing a basic salary (Base Pay) of less than or equal to Rs.10,000/- per month are eligible for Bonus for the financial year 2006-2007.

The Act is applicable from April 1, 2006 which means that the Act is applicable for the Financial Year 2006 - 2007 (April 2006 to March 2007).

Per Bonus Act, minimum bonus payable is Rs.100/- and the maximum bonus payable is Rs.8400/-

The criteria involved for Bonus Calculation and payment for the financial year 2006-2007 (April 1, 2006 to March 31, 2007) is as follows:

· Employees joined on or before 28-Feb-2007 and whose Basic Salary (Base Salary) was less than or equal to Rs.10,000/-per month are covered under this Bonus payment.
· Bonus under the Act is calculated at 20% on actual basic salary (base pay) or Rs.3500/- per month, whichever is lower
· Bonus is pro-rated for the period the employee has served during the financial year 2006-2007
· Employee should have completed at least a minimum of 30 days during the financial year 2006-2007

Please note that Bonus Payment is as per Statutory requirement. This is not a performance bonus or performance linked Incentive

Bonus Payment is as per Statutory requirement. This is not a performance bonus or performance linked Incentive. Could you please share the information that can we bifurcate the mandatory bonus i.e can we pay on monthly basis.

thank Q for your kind information

regards
lvs.nagaraju