Struggling to Understand Bonus Calculations for Certain Employees – Can You Help?

Hello Seniors, I hope you are doing well. Could someone please elaborate on this, as I am unable to understand the content of this article:

Calculation of Bonus with Respect to Certain Employees

"Calculation of bonus with respect to certain employees. 2*[12. Calculation of bonus with respect to certain employees.- Where the salary or wage of an employee exceeds 3*[two thousand and five hundred rupees] per mensem, the bonus payable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were 3*[two thousand and five hundred rupees] per mensem.]"

Thank you in advance.

Best Regards, Amar

It means an employee who may be earning any amount of salary, but when calculating the bonus, you have to take only $3500 as his base salary.

Regards,
Rajeev Dixit

As per Amendment 2007, the amount of Rs. 2500/- that you mentioned in your query is now substituted by Rs. 3500/-.

Ceiling for Bonus Calculation

This section (Section 12) deals with the ceiling for the purpose of calculating the bonus. According to it, if an employee's salary exceeds Rs. 3500/- (now), for example, Rs. 5000/-, the bonus is calculated based on Rs. 3500/- and not on Rs. 5000/-.

I hope my response meets your satisfaction.

Regards,