After amendment section 12 of the Payment of Bonus Act, 1965 reads as under:
12. Calculation of Bonus with respect to certain employees :
Where the salary or wage of an employee exceeds seven thousand rupees or the minimum wage for scheduled employment, as fixed by the appropriate Government, whichever is higher 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 seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate government, whichever is higher, per mensem.
After a careful study of the above amended section, it transpires that bonus to the employees drawing salary or wage of less than Rs.7000 p.m. shall be payable on actual salary or wage received by them during the last financial year. But the employees drawing Rs.7000 or more will be entitled to bonus payable on salary or wages received by them during the last financial year with a maximum limit, which is higher of the two, i.e., Rs.7000 or a percentage of minimum wage for their scheduled employment received by them. Thus it transpires that employees getting monthly salary or wage upto Rs.21000 p.m. are entitled to bonus on actual salary or wage received by them for their scheduled employment, as fixed by the appropriate Government, or Rs.7000, whichever is higher.