Understanding Bonus Eligibility: How Does It Work for Salaries Above Rs. 3500?

Dear Sir,

As per the Bonus Act, the minimum bonus to be paid is 8.33% of BASIC + D.A. The minimum ceiling is Rs. 3500.00. An employee drawing more than Rs. 3500 (Basic + DA), what will be his eligibility for the bonus?

Hi Xavier,

If the employee's Basic + DA is 3500, then the bonus is 292 pm. If the employee's Basic + DA is 3500 or greater, then the bonus is also limited to 292 pm. If the employee's Basic + DA is 3000, then the bonus is 250 pm.

Hope this is clear.

Regards,
Giri

Employee is eligible for a bonus if drawing wages (Basic+DA) up to Rs. 10,000/- per month or less (8.33% OR 20%). For calculation purposes, a maximum of Rs. 3,500/- per month will be taken even if an employee is drawing up to Rs. 10,000/- per month. It's at management's discretion to pay Ex-gratia for wages above Rs. 10,000 (Basic+DA).

Mahesh Patel

Mr. Surjeet,

You shall take only Basic + DA for bonus calculation, not gross. The employees who are receiving Rs. 3500/- (Basic + DA) and below are the only ones eligible for a bonus as per the Bonus Act.

Thanks,
SELVAKUMAR

Dear Reyami,

Please refer to the Gazette notification of India regarding "The Payment of Bonus (Amendment) Ordinance, 2007" dated 27.10.2007, which raises the eligibility limit for payment of bonus from a salary or wages of Rs. 3500 per month to Rs. 10000 per month.

If you require the notification, please contact me via email at [Login to view].

M.K. Sharma Mobile: 9990422755

Dear Reyami,

Please refer to the Gazette notification of India regarding "The Payment of Bonus (Amendment) Ordinance, 2007" dated 27.10.2007, which raises the eligibility limit for payment of bonus from the salary or wages of Rs. 3500 per month to Rs. 10000 per month.

If you require the notification, please contact me via email at somc.delhi@gmail.com.

M.K. Sharma
Mobile: 9990422755

Dear Sir,

As per the Bonus Act, the minimum bonus to be paid is 8.33% of BASIC + D.A. The minimum ceiling is Rs. 3500.00. An employee drawing more than Rs. 3500 (Basic + DA), what will be his eligibility for a bonus?

[QUOTE=xavier reyami;876006]

Good notification, but one question is that suppose if Basic is 2500, DA = 1500, and his Basic & DA become 4000. Apart from this, he gets HRA 1000, CA 800, medical allowance 2000, and education allowance 200. His salary becomes 8000.

Here in Karnataka, on allowances, P.T. is going to deduct, i.e., 100 Rs. Now B & D is 4000, is 30 Rs. Now whether again we have to deduct P.T.? Can anybody tell about this?

Please advise. - SLG

Dear Sir,

If an employee's monthly CTC is 10500/-, and their monthly salary is 8700/-, then he or she would be eligible for a bonus.

Regards,
Suman