Dear colleague, I am an employer in the government sector and have a doubt regarding the payment of a bonus as the basic salary of contractual employees (security personnel) has crossed the ceiling of Rs. 21,000. Are they entitled to receive a bonus under these circumstances? If so, on what basis should it be considered for distribution? Please advise as the Payment of Bonus Act does not explicitly address this issue.

With regards

From India, New Delhi
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The legal liability for the payment of a bonus arises only for employees covered under the Act. Beyond the salary limit, there is no statutory requirement, but many organizations pay an amount they deem appropriate according to their capacity.
From India, Mumbai
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