Understanding the New Bonus Act: Who Qualifies and What Percentage to Pay?

Dear Friends,

As per the new Bonus Act amendment, the ceiling has been raised to Rs. 10,000/- per month. Now my question/problem is:

1) Do we have to pay Bonus to all those employees whose Basic salary is up to Rs. 10k or their gross salary is up to Rs. 10k?

2) What is the minimum percentage we have to pay - is it 8.33%, 10%, 15%, or 20% - if we show profits in our books?

All seniors/colleagues are requested to kindly solve my query. I will be thankful to you.

Regards,
Rajkumar

Dear Rajkumar,

Please find attached the PPT on Bonus. It will help you.

Thank you for the presentation, Akhil. However, there is a need for clarification on the questions that have not yet been answered. I am looking forward to receiving more insights from HR friends.

Rajkumar

Hi,

An employee drawing Basic+DA up to Rs. 10,000 shall be entitled to receive a bonus under the Payment of Bonus Act. Employees drawing Rs. 3,500 or above as Basic+DA shall receive the bonus based on Rs. 3,500/- as this is the maximum limit for the computation of the bonus. The percentage of the bonus shall depend on the Allocable surplus for the particular year of your company. I hope this will provide better clarity.

Regards,
ACCHR

Sekar
Bonus is payable within 8 months from the close of the accounting year, and the returns are to be filed within 30 days after the expiry of the time limit prescribed. (i.e., if the close of the accounting year is 31st March, the Bonus is required to be paid by 30th November, and the returns are to be filed by 30th December.)
Valar
9810021991