Payment of Bonus Act Confusion: Which Minimum Wage Category Applies?

My question is under the Payment of Bonus Act, the ceiling is INR 7,000 or the minimum wages, whichever is higher. So, which minimum wages should be considered?

- Unskilled
- Semi-skilled
- Skilled
- Super-skilled

Dear colleague,

Minimum wages are applicable based on the individual's skill level to which he is assigned.

Regards,
Vinayak Nagarkar
HR Consultant

As per my knowledge, you have to consider the minimum wages in areas where it is higher than the minimum ceiling of Rs. 7,000 irrespective of the category of the employee. The minimum ceiling of Rs. 7,000 needs to be considered with the intent to offer additional benefits for those who are in areas where the minimum wage is less than Rs. 7,000. So, it is clear that the act doesn't restrict anyone from getting a higher amount of benefits. Therefore, irrespective of the category of employees, if the minimum wages of a particular state/area are higher than Rs. 7,000, then the employer is responsible for making bonus payment on that amount.

Thanks and Best Regards,
Syam