Understanding Bonus Calculations: Is the Ceiling Now 21,000 Rupees or Still 7,000?

Dear colleagues,

As per Section 12 of the Payment of Bonus Act, 1965, should the bonus be calculated as 8.33% of salary or wages with a maximum consideration of 7,000 rupees or the minimum wages specified for that state? Has the ceiling amount been revised to 21,000 rupees, such that "bonus be calculated as 8.33% of salary or wages with a maximum consideration of 21,000 rupees or the minimum wages specified for that state"?

If yes, kindly send me the legal attachments for the same. Your help in this matter is highly appreciated.

The notification is attached for your understanding and interpretation to abide by.

---

The notification is attached for your understanding and interpretation. Please review it to ensure compliance. Thank you.

Employees with wages up to Rs. 21,000 per month are eligible for a bonus. However, for the calculation of the bonus, the wage is limited to Rs. 7,000 or the minimum wage, whichever is higher.