Understanding Bonus Rules and Calculations: Can You Share Your Insights?

Inquiry About Bonus Rules and Calculation Methods

I want to know about the bonus rules/acts and the calculation methods. Can anyone provide information on the current bonus rules, eligibility, and calculation?

Regards,
Mukesh Singh

Eligibility
He/she has to work a minimum of 30 physical working days in an accounting year.

Calculation Example
If the salary is ₹7500 per month:
- Basic: ₹2000 per month
- DA: ₹1500 per month
- HRA: ₹4000 per month

Basic + DA: (₹2000 + ₹1500) * 8.33% * 12 months = ₹3500 per annum (Min Bonus)
Basic + DA: (₹2000 + ₹1500) * 20% * 12 months = ₹8400 per annum (Max Bonus)

Bonus payment should not be less than the Min Bonus.

For rules, you have to go through the Payment of Bonus Act 1965.

Regards

Thank you, Mr. Vinay M. I have another question. Who is not eligible for a bonus from a salary point of view? For example, if someone's salary is ₹25,000 (Basic ₹15,000, HRA ₹7,500, DA ₹2,500).

He is eligible if any one salary component is ₹25,000/- (Basic ₹15,000, HRA ₹7,500, DA ₹2,500/-). However, you must comply with statutory rules. In this case, the maximum bonus he is eligible for is ₹8,400/- per annum (₹3,500/- X 20% X 12 Months).

Regards,