Understanding Bonus Applicability: Are All Establishments Covered Under the Bonus Act?

Details About the Bonus

1. Which establishments are covered under the bonus act?
2. Is the bonus compulsory for all employees?
3. What is the ceiling of the bonus?
4. What is the deadline for submitting returns?
5. How are older establishments covered under the bonus act?
6. Can the bonus be distributed twice in a year?
7. What are the minimum and maximum bonus amounts?

Regards,
Pulkit

Bonus Calculation

If Basic + DA (FDA + VDA) is greater than or equal to 3500, then 20 percent on 3500, and if Basic + DA is less than 3500, then 20 percent on the actual. For example, if Basic + DA is 4500, then the bonus will be 3500 * 20% per month, and if Basic + DA is 2500, then the bonus will be 2500 * 20%.

Regards,
Sukhada

If an employee is receiving a basic salary of 9,000, how much bonus would be paid to that employee if the company provides a minimum bonus of 8.33%? Kindly solve my query.

Regards,
Pulkit

I want to know if the number of months served is also taken into account for bonus calculation.