If the earned gross salary is more than Rs. 21,000, no bonus shall become payable to the employee. But if any part of the year had accounted for wages of Rs. 21,000 or less, the earned salary for that period will qualify for a bonus. In respect of employees with a salary of more than Rs. 21,000, there is no need to pay a bonus, treating it as Rs. 21,000. Moreover, even in respect of employees within the bonus wage ceiling limit of Rs. 21,000, you can pay a bonus calculated on the basis of a salary of Rs. 7,000 or statutory minimum wages, whichever is higher.
Simply, an employee whose salary is Rs. 21,001 need not be given a bonus. In respect of an employee whose salary is Rs. 21,000, you should pay a bonus. The bonus need not be calculated on Rs. 21,000 but it can be capped at 8.33% of Rs. 7,000 for each month. If the statutory wages fixed by the government are, say, Rs. 12,000, then you should calculate the bonus on Rs. 12,000 as if their wage is Rs. 12,000 per month.