You are eligible for a bonus under the Act as long as your basic salary is up to Rs. 10,000. Once your basic salary increases to more than Rs. 10,000 in any given month, you will no longer be eligible for the bonus.
If your current basic salary is 60% of Rs. 20,000, then you are not eligible for a bonus. However, if your basic salary is up to Rs. 10,000, then you are eligible for a bonus.
Even if your salary crosses Rs. 10,000, you will receive a bonus on a pro-rata basis for the partial period within the bonus limit. If the salary exceeds Rs. 10,000 at the beginning of the financial year itself, a statutory bonus is not eligible.
Bonus is calculated over Basic and DA. One is eligible for a bonus until they draw basic + DA up to Rs. 10,000 per month. This is the eligibility condition for bonus entitlement. However, the bonus is to be calculated taking salary (basic + DA) as Rs. 3,500 only.
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