Confused About Bonus Calculations? Need Help Understanding the Bonus Act Details

Dear All,

Could you please provide information about the Bonus Act and how we should calculate the bonus for employees? Is it calculated based on the actual working days for the financial year? I am very confused regarding the bonus. My concept is not clear on how the bonus calculation works. Could you explain it in detail?

Thanks,
Nirmala

Dear Nirmala,

The minimum bonus is 8.33%, and the maximum bonus is 20%. Employees who are earning 10,000 and below are eligible for the bonus. The ceiling amount is 3,500. For example, if the salary is 3,000, the calculation is as follows: 3,000*12*8.33%. The percentage of the bonus is decided by management based on the profit and loss of the accounting year.

I hope this information is helpful to you.

Mahesh
09986182463.