Confused About Bonus Ceiling for 2010-11? Seeking Clarity on the Latest Limits!

Dear All, We are a manufacturing unit in Gurgaon. We want to know what the latest bonus ceiling amount is, as we have to pay a bonus to our employees for the year 2010-11. We are currently paying a maximum of 10,000.00 (ten thousand). We have heard that the bonus ceiling is 6,500.00. Is this correct or not? Please update us.

Regards, Sheena

Dear member, I am unable to understand the information provided above. However, an employee earning up to Rs. 10,000 per month is entitled to a minimum bonus of 8.33%, calculated on Rs. 3,500 (which is Rs. 291.55 or rounded to Rs. 292 per month), and typically paid up to 20%, amounting to Rs. 8,400 (or Rs. 700 per month). To date, I have not received any information regarding changes or ceilings. If any members of the forum have different or new information, please share.

Regards,

Earlier, the minimum bonus ceiling was a maximum of Rs. 3,500 per year to be paid within the completion of the financial year, i.e., March, for employees drawing a salary/wages up to Rs. 6,500 per month. However, from last year, this ceiling was enhanced to salary/wages drawing up to Rs. 10,000 per month, even if the company/firm does not have a profit. The maximum bonus percentage is set at 20%. The time limit for payment is 8 months, i.e., by 30th November; hence, you are already in default.

Thank you.