Bonus Calculation Confusion: How Do You Figure It Out After the Ceiling Change?

Can anybody tell me the clear calculation for the bonus after the ceiling revision from ₹3,500 to ₹10,000?

Bonus Calculation After Ceiling Revision

Now, the ceiling of the minimum bonus (8.33%) is Rs. 3500, and the maximum bonus (20%) is Rs. 8400. The amount in between can be calculated as 3500 x 12 x eligible percentage. For example, if the percentage is 10, the bonus would be 3500 x 12 x 10% = Rs. 4200.

Regards,
Abbas.P.S

As per the Payment of Bonus Act, employees who are drawing a salary up to ₹10,000 are eligible, whereas the bonus amount shall be calculated on a ₹3,500 salary per month for those whose salary is in excess of ₹3,500 and up to ₹10,000. For salaries below this range, the bonus has to be calculated accordingly. In other words, to cover the employees under the Bonus Act, the ceiling limit has been increased up to ₹10,000 per month from ₹3,500. I hope I have clarified this for you.

Regards,
Chandrshekar
Bangalore

Bonus Eligibility and Calculation

Every employee not drawing a salary/wage beyond Rs. 10,000 per month, who has worked for not less than 30 days in an accounting year, shall be eligible for a bonus of a minimum of 8.33% of the salary/wages, even if there is a loss in the establishment. The maximum bonus payable in the accounting year is 20% of the employee's salary.

However, in the case where the employee's salary range is between Rs. 3,500 to Rs. 10,000 per month, for bonus calculation purposes, their salary would be deemed to be Rs. 3,500 per month.