Understanding the Bonus Act Amendment: Is the New Ceiling Based on Basic DA or Gross Salary?

Dear Friends,

According to the recent amendment to the Payment of Bonus Act, the ceiling limit for payment of bonus was raised from Rs. 3500 to 10000.

Please tell me if this amount is Basic DA or Gross Salary.

Regards,
Sujith

Bonus is calculated on Basic + DA + Special pay. To be more specific, DA includes Fixed DA and Variable DA.

Regards,
Vijay

Does it mean that an employee who receives more than $10,000 as a basic salary is not eligible for bonus payment?

Please let me know if you need further assistance.

Dear Sujit,

Amendments to the Bonus Act

Following are the amendments that will be taken into effect:

1. Employees drawing a gross salary not more than ₹15,000 per month will only be eligible for a bonus according to this new amendment in the Bonus Act (currently it is ₹10,000).

2. The ceiling from ₹3,500 has been changed to ₹5,000, and it refers to the basic salary, not the gross salary.

3. The bonus will be calculated at a rate of 11% of the Basic up to ₹5,000, i.e., the maximum amount will be ₹550 per month (currently it is 8.33% on basic up to ₹3,500 with the maximum amount being ₹292).

Regards,

Till date, there is no amendment in the Payment of Bonus. It's just that the bill has been introduced to raise the ceiling to Rs. 15K, but it has not been amended yet.

Regards,
Vikram

[QUOTE=Jagjit_s4;1322463] Dear Sujit,

Following are the amendments that will be taken into effect:

1) Employees drawing a Gross salary of not more than 15,000/- per month will only be eligible for a Bonus according to this new Amendment in the Bonus Act (Currently it's 10,000/-).

2) The ceiling from 3500 has been changed to 5000, and it's the Basic Salary and not the Gross.

3) The bonus will be calculated at a rate of 11% of Basic up to 5000/- i.e. the maximum amount will be 550/- per month (Currently it's 8.33% on basic up to 3500/- with the maximum amount: 292/-).

Dear Sir,

Kindly provide notification in support of the above ceiling limit of the bonus and 11% as the minimum bonus.

With regards, Ankita Vashi

The bonus must be calculated on Rs. 3500 per month. The minimum bonus payable is only 8.33%, and the maximum bonus payable is 20%. Whatever was mentioned by Jagjit is still under the proposal stage and has not yet been approved by the government.

Thank you.