Understanding Bonus Rules: What's the Latest on Ceiling, Calculation, and FTC Eligibility?

Hi,

Please provide information regarding the following:

1. What is the latest amendment concerning the Ceiling of Bonus, i.e., what should be the minimum basic in order to give the bonus? (Is it Rs. 3500 or Rs. 5000)
2. Is bonus calculated on basic pay or gross? Or what is the basis for the calculation of bonus?
3. Are Fixed Term Contractual (FTC) employees for a one-year term (which is renewed every year) entitled to a bonus?

You are requested to reply soon as this is very urgent.

Regards,
Francis Palmer

Hi,

Once an individual is appointed through the company, if they work for 30 days or more, the payment of a bonus is mandatory under the law. The salary ceiling limit has been increased to Rs 10,000, not Rs 5,000 as previously specified by you.

Regards,
R. Sudhakar

Dear employees,

Employees whose basic salary is up to $10,000 per month are entitled to receive a bonus. The bonus is calculated based on $3,500, which means the calculation is done using the $3,500 figure. All employees who have worked for more than 30 days are entitled to receive the bonus.

Thank you,
J. S. Malik

Dear all,

Bonus is calculated on Earning basic + DA (Below 10,000) at 8.33% on Earning Basic + DA. The calculation is done on 3,500.

The employment of 20 or more persons on even one day in a year is sufficient to attract the provisions of the Act.

I am drawing a salary of Rs. 13,000/- gross per month. Am I eligible for a bonus according to the Act? If I am eligible, to what extent can I receive a bonus? Please let me know.

No, you are not entitled to a bonus because the present bonus ceiling is Rs. 10,000/-, which means only those who earn a basic + DA of Rs. 10,000/- can be entitled to it. The calculation is based on Rs. 3,500/- (previously it was Rs. 2,500).