Understanding Wage Limits and Bonus Calculation in Employment: Key Insights and Amendments

Please let me know about the wage limit for the bonus.

RK

Wage limit for the bonus is 3500/-, as rightly said. However, please note: in case an employee is receiving a salary or wages between Rs. 2500/- and Rs. 3500/-, the bonus payable to him is to be calculated as if his salary or wages were Rs. 2500 per month only (Sec 12 of the Bonus Act).

Regards,
Sudien

Dear HR's,

I am Sreenivas, working as an Assistant HR. The Bonus Act was amended in 2007.

Sree

Dear All,

Can you please let me know what the minimum limit of wages is for a bonus and what percentage a company has to pay to the employees?

Jagdish Pathak
# 9811488664

Dear all,

The wage limit of the bonus has been revised. Now, if an employee's basic salary + DA is less than 10,000 per month, they are entitled to a bonus. However, the calculation will be based on 3,500. This means that employees with a basic salary + DA between 3,500 and 10,000 will receive the same bonus.

Regards,
J.S. Malik

Dear Mr. Malik,

Thank you very much for your valuable response, but here is a small query. If an employee is getting INR 6000 (Basic+DA), in that case, will the bonus be calculated at 8.33% on 6000 or should we pay a fixed amount of 3500?

Please help.

Regards,
Jagdish Pathak