The Payment of Bonus Act was amended to cover all employees getting salary of not more than Rs 10000. The notification in this respect is not available right now. Previously the salary ceiling was Rs 3500. During that time those drawing salary between Rs 2500 and Rs 3500 was to be given bonus at the rate fixed taking the salary as Rs 2500. Now all those who get salaries between Rs 3500 and Rs 10000 will be getting bonus at the fixed rate taking the salary as Rs 3500 and not Rs 2500. To explain, if one employee is getting Rs 3400 per month ( or Rs 40800 per annum), and the management has declared a bonus of 10% (minimum bonus is 8.33% and the maximum bonus is 20%) then his bonus would not be Rs 4080 as calculated on the basis of his salary of 3400 but would be Rs 3000 calculated as if he salary was only Rs 2500.
Now the bottom has been made Rs 3500 and any person who gets salary more than Rs 3500 but not more than Rs 10000 will be getting bonus as if his salary is Rs 3500.
Hope it is clarified.
Regards,
Madhu.T.K