Understanding Bonus Eligibility and Calculation: What Are the Key Criteria and Limits?

Dear Friend,

I need help regarding bonuses. Specifically, I am looking for information on the eligibility criteria, calculation method, minimum bonus amount, and any limits that may apply to bonuses.

Thank you for your assistance.

Best regards

Dear all,

All related issues are there in the Payment of Bonus Act, 1965 if you have put this query under this Act itself.

With Regards,
R.N.Khola

Dear Payush,

If any employee works in a company for a minimum of 30 days, they will be eligible for it. Secondly, the minimum limit is 8.33% of the basic salary, and the maximum is 20% of the basic salary.

Thank you.

Payush

Dear Member,

Those who have completed one month are eligible for a bonus as per the bonus act. The minimum bonus should be 8.33% of the basic salary, with a maximum of 20% of the basic salary.

If you need any further clarification, please let me know via email at niravg629@gmail.com.

Hi all,

How to calculate the bonus for a person who worked for 30 days? Is it (basic*8.33%)/12*1 (one month) or will he be eligible for the total amount of bonus, i.e., basic*8.33%?

Regards,
Vishwanath

Here is how to calculate the bonus: it is paid as basic + DA for the financial year multiplied by 8.33% if the monthly basic + DA is more than 3500/-. For the purpose of calculating the bonus, the basic and DA should be considered as 3500/-. The calculation can be done as follows:

3500/365 * number of present days

As per the Act, the minimum bonus is 8.33%, and the maximum is 20%. However, the salary for the calculation of the bonus is Rs 3500/- (the eligible limit is up to Rs 10,000 (i.e., even though your salary is 6500, the salary considered for the bonus calculation is Rs 3500 only)). Therefore, the minimum bonus one gets under the PBA Act is 3500*8.33%*12 = 3499, whereas the maximum bonus is 3500*20%*12 = 8400, as rightly mentioned by your accounts.

Regards,
Ravi

One employee got a salary of more than 10,000 rupees in one month this year. Is he entitled to a bonus or not? Please kindly provide a clear answer to this.

Dear,

The bonus for that particular month shall not be payable in that accounting year.

With Regards,
R.N.Khola

[QUOTE=satyahr@yahoo.com;1092994]
One employee got a salary of more than 10,000 rupees in one month in a year. Is he entitled to a bonus or not? Please kindly provide a clear answer to this.