How Do You Calculate a 20% Bonus on UP Minimum Wage? Seeking Advice

Dear Team,

Please suggest the bonus calculation based on the UP minimum wage.

For instance, the skilled salary MW is Rs 13,120 (Basic+DA), and the total gross salary is Rs 18,500. How much will be the one-month 20% bonus?

- Basic+DA: 13,120 (2,624)
- Gross: 18,500 (3,700)

Please advise.

Hi Vivekanand Yadav,

The eligibility ceiling under the Bonus Act is Rs. 21,000, and the wage ceiling is Rs. 7,000 or the minimum wage, whichever is higher.

In this case, the minimum wage is Rs. 13,120; therefore, a 20% bonus will amount to Rs. 2,624.

Regards,
MVK