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 is the latest bonus ceiling amount as we have to pay a bonus to our employees for the year 2010-11. We are paying a maximum of 10,000.00 (ten thousand).

We have heard that the bonus ceiling is 6,500.00. Is it correct or not? Please update us.

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,

Hi Sheena,

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 the 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.