Hi
You will find lots of discussion on Bonus issues, although please find : As per bonus Act it is correct that, minimum bonus is 8.33 % & max.bonus is 20% but the % of bonus is depends on profitibility of the company, which cam from Bonus register A & B, which generally Finance people maintain. First allocate the bonus amount from register A & B then calculate the %age of bonus. If company is in loss then 8.33% is must, but incase company is in profit then need to calculate the % amount which basically derived from register A & B and will very between 8.33 to 20%
Note : Suppose one year you have paid 20% on the basis of profitability and if still the allocable bonus amount is balance in book, which will carry forward for next five years to compensate if required for forthcoming years.
Regards
Arun