Hi,
I need clarification on the below clause of the Payment of Bonus Act, 1965 (amendment):
ii) Amendment to section 12 of the Payment of Bonus Act, 1965 to raise the ceiling for calculation purposes from the salary or wage of Rs. 2500/- per month to Rs. 3500/- per month;
Does the phrase "ceiling for calculation purposes" imply that if the Basic+DA of an employee exceeds Rs. 3500/-, for calculation purposes, we need to consider Rs. 3500/- for each month and sum the same for 12 months to apply the percentage?
Or is there another method for calculating the bonus?
Please assist me at your earliest convenience.
Thanks and Regards,
Srinivas
09848615410
I need clarification on the below clause of the Payment of Bonus Act, 1965 (amendment):
ii) Amendment to section 12 of the Payment of Bonus Act, 1965 to raise the ceiling for calculation purposes from the salary or wage of Rs. 2500/- per month to Rs. 3500/- per month;
Does the phrase "ceiling for calculation purposes" imply that if the Basic+DA of an employee exceeds Rs. 3500/-, for calculation purposes, we need to consider Rs. 3500/- for each month and sum the same for 12 months to apply the percentage?
Or is there another method for calculating the bonus?
Please assist me at your earliest convenience.
Thanks and Regards,
Srinivas
09848615410