Bonus Payment If There Is One Month Where Pay Is Above Ceiling?

p ramachandran
As per the amended Bonus Payment ACt, those whose salary is 21000 and less are eligible for bonus. If a person has earning of Rs.19000 for ten months starting from April to January, in February his earning was 21800 and in March his earning was Rs.19900.
Pls clarify whether he is eligible for bonus and how his calculations to be made?
PreetamDeshpande
Dear Member
Before giving you a concrete reply to your query please clarify the following :-
1. when you say Earning, does it mean Gross or Basic.
2. What was the reason for increase of Earning in the month of February.
Your inputs on the above queries will make it easy for all the learned members to give their inputs on the query raised by you.
CompliCheck - Compliance Tool
Since the salary came down again in March the February salary seems to have a variable component hence it should not affect the bonus eligibility. So yes, bonus should be paid.
Minimum statutory bonus is 8.33% of 7000 or state minimum wages whichever is higher. You can read my blog: Interpreting Payment of Bonus (Amendment) Act, 2015 | CompliFacts for more details.
Hope this clarifies you doubts.
PL Kanthan
The matter is made amply clear by Complicheck systems. Appreciated
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