I came across this section of Payment of Bonus Act Section 11 which says:
"In any accounting year, if the allocable surplus exceeds the amount of minimum bonus payable to the employees, the employer shall in lieu of such minimum bonus, be bound to pay bonus (maximum bonus) equivalent to the amount which shall not exceed 20% of the salary or wages earned by employees."
Now the question is :
1) whether we have to pay anywhere in the range of greater than 8.33% & less than 20%
OR
2) do we have to pay 20% flat.
My understanding was that its the choice of employer to give between 8.33% to 20% incase allocable surplus is more than the amount of minimum bonus.
Need your help urgently for decision making.
"In any accounting year, if the allocable surplus exceeds the amount of minimum bonus payable to the employees, the employer shall in lieu of such minimum bonus, be bound to pay bonus (maximum bonus) equivalent to the amount which shall not exceed 20% of the salary or wages earned by employees."
Now the question is :
1) whether we have to pay anywhere in the range of greater than 8.33% & less than 20%
OR
2) do we have to pay 20% flat.
My understanding was that its the choice of employer to give between 8.33% to 20% incase allocable surplus is more than the amount of minimum bonus.
Need your help urgently for decision making.