Understanding Bonus Limits: What You Need to Know About Eligibility and Inclusions

From which financial year is the bonus of ₹10,000 limit applicable? What all is included in ₹10,000 - basic, DA, or any other allowance? What's the maximum ceiling, ₹3,500 or ₹6,500? To be eligible for a bonus, what is the minimum period of working in a financial year required? If an employee's wages increase above ₹10,000 during the financial year, up to what limit are they entitled to a bonus? Please clarify the doubts.

Maximum bonus allowed = Maximum Calculation on Rs. 35,000/month (Jan + Feb + March + April + May + June + July + August + September + October + November + December) / 12 * 20.

If the salary/wages (Basic + DA + VDA, if any) increase by more than Rs. 10,000, then the bonus is not applicable.

In case of any queries, please call Prashant at 9850401160.

Seniors, please advise if I am wrong.

Prashant 9850401160

Dear,

To be eligible for a bonus, an employee has to work a minimum of 30 days in a year. Regarding salary, if any person's salary is 10000/- (Basic+DA+VDA), then he is eligible for a bonus, but the calculation will be based on 3500/-.

Thanks,
Sahil

It is applicable w.e.f. FY 07-08. To be eligible for a bonus, an employee has to work a minimum of 30 days in a year. For salary, if any person's salary is 10,000/- (Basic+DA+VDA) per month, then he/she is eligible for a bonus, but the calculation will be done on 3500/-. If the salary is increased within a financial year, then the employee will receive the bonus until the time his/her salary was less than 10,000/-

Regards, Govil

Hi,

To whom should the bonus be paid - salary (Basic + DA + VDA) up to 10,000/- per month?

How should it be calculated - Wages should be calculated at 3,500/- per month or actual (Basic + DA + VDA), whichever is less.

What is the percentage between 8.33% to 20%?

Regards,

Dabas Pushpa
Dabas Consultancy Services

Maximum Calculation on Rs. 35,000/month (Jan + Feb + March + April + May + June + July + August + September + October + November + December) / 12 * 20.
Dear Prashant, please let me know what the significance of "20" is in the bonus calculation. I would be grateful if you could clarify.

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You had a few spelling errors, punctuation errors, and formatting issues in your text. I have corrected them and arranged the text into well-structured paragraphs.

Dear Prashant,

You have got your 'calculations' wrong (although I understand you are trying to calculate the max. bonus payable, i.e., @ 20%). Please cross-check and resubmit for everyone's benefit. Incidentally, when you multiply 8.33 (the statutory minimum bonus payable) by 12 (months), you get 100 (%).

Regards.

Dear all,

Bonus is calculated on a financial year basis, not on a calendar year basis. For calculation, you can visit www.citehr/173686-bonus-act.html. I have explained in this thread how to calculate it.

Regards,
JS Malik