Understanding Bonus Laws: How Much Bonus Does a Manager Earning Rs. 25,000 Get?

KC_3000920
If a manager draws a salary of Rs. 25,000/- per month, then how much bonus is given to him by law and Acts? Kindly explain...

Role of a Ceiling in Bonus

What is the role of a ceiling in bonus?
sivakumar1611
You had only provided the gross salary; you did not furnish the Basic+DA details. If his Basic+DA is less than ₹10,000, then he is eligible for a bonus. If his Basic+DA is more than ₹10,000, then he is not eligible for the bonus, and you have to pay the bonus based on only Basic+DA, not on the gross salary. The minimum bonus is 8.33% of Basic+DA, and the maximum is 20% of Basic+DA.

For example, if an employee's Basic+DA is ₹7,500, then we have to calculate the bonus based on only ₹3,500. If his Basic+DA is less than ₹3,500, at that time, we have to consider the actual Basic+DA only.

Regards
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute