Dear Seniors,
If an employee gets Rs. 6500/- (basic 3500/-, HRA 2000/-, and Con. 1000/-) per month as salary, then what is the bonus eligibility for that employee? Should we consider only the basic for calculation or the total amount? The minimum wage for that cadre is 6000/-.
From India, Hyderabad
Acknowledge(0)
Amend(0)
1If an employee gets Rs. 6500/- (basic 3500/-, HRA 2000/-, and Con. 1000/-) per month as salary, then what is the bonus eligibility for that employee? Should we consider only the basic for calculation or the total amount? The minimum wage for that cadre is 6000/-.
From India, Hyderabad
Acknowledge(0)Amend(0)
Bonus Eligibility and Minimum Wages
Bonus is payable on Rs 7,000/- or the minimum wages applicable for the designation, whichever is higher, as per the Payment of Bonus Act, 1965. Furthermore, please note that basic wages cannot be Rs 3,500/- in any state for any scheduled employment.
Clarification Needed
Please frame your question based on facts and figures. The definition of salary for bonus and minimum wages includes basic wage, dearness allowance, or variable dearness allowance. For which financial year are you planning to pay the bonus? For which cadre is the minimum wage Rs 6,000/-? Please clarify and attach the relevant notification for perusal.
From India, New Delhi
Acknowledge(1)Amend(0)
Bonus is payable on Rs 7,000/- or the minimum wages applicable for the designation, whichever is higher, as per the Payment of Bonus Act, 1965. Furthermore, please note that basic wages cannot be Rs 3,500/- in any state for any scheduled employment.
Clarification Needed
Please frame your question based on facts and figures. The definition of salary for bonus and minimum wages includes basic wage, dearness allowance, or variable dearness allowance. For which financial year are you planning to pay the bonus? For which cadre is the minimum wage Rs 6,000/-? Please clarify and attach the relevant notification for perusal.
From India, New Delhi
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc