1. For bonus eligibility: 30 man working days in a financial year is must. If below 30 working days he is not entitle for bonus.
2. Calculation of Bonus: Total earnigs (Basic + DA )in a year x 8.33% ( but maximum is 20%)
3. Wage ceiling is Rs.3500/- per month
4. Coverage of Bonus for the employees whose's monthly Wage is less than Rs.10,000/- only ( i.e. Monthly Basic + DA should not exceed 10,000/-) if exceeded, he is not entitlement for bonus. If emplyer desires to pay bonus, they can be paid as per their wish by calling an "ex-gratia" and not bonus i.e. out of purview of bonus act
5. They should maintain the Bonus Register in Form C
it is little bit confusion for the first time calculation but it is easy.
If any query is required please do not hesitate to call: 09704233306 (MADHAVA RAO G - Industrial Labour Law Consultant, Hyderabad)