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The Payment of Bonus Wages Act 1965
As per the act, an employee has to work a minimum of 30 days during the financial year to be eligible for a bonus. The applicability states that employees drawing <=10000 (Basic+DA) only will be eligible for a bonus. The bonus calculation should be a minimum of 8.33% of Basic+DA, but the calculation of 8.33% should be based on 3500/- only. The maximum bonus can be 20% of Basic+DA with a limit of 3500/-.
Regards,
Charvaka Reddy
From India, Hyderabad
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As per the act, an employee has to work a minimum of 30 days during the financial year to be eligible for a bonus. The applicability states that employees drawing <=10000 (Basic+DA) only will be eligible for a bonus. The bonus calculation should be a minimum of 8.33% of Basic+DA, but the calculation of 8.33% should be based on 3500/- only. The maximum bonus can be 20% of Basic+DA with a limit of 3500/-.
Regards,
Charvaka Reddy
From India, Hyderabad
Acknowledge(1)Amend(0)
Hi,
The minimum bonus to be paid is 8.33% of Basic + D.A, and the maximum bonus that can be paid is 20% of Basic + DA. The ceiling limit is Rs. 3500.00.
For example, for a bonus paid at 8.33%, the calculation is as follows:
- If the employee's Basic + DA is 3500, then the bonus is 292 pm.
- If the employee's Basic + DA is 3500 or greater, the bonus is still limited to 292 pm.
- If the employee's Basic + DA is 3000, then the bonus is 250 pm.
Another example is for a bonus paid at 20%, the calculation is as follows:
- If the employee's Basic + DA is 3500, then the bonus is 700 pm.
- If the employee's Basic + DA is 3500 or greater, the bonus is still limited to 700 pm.
- If the employee's Basic + DA is 3000, then the bonus is 600 pm.
I hope this is clear.
Regards,
Giri
From India, Bangalore
Acknowledge(0)Amend(0)
The minimum bonus to be paid is 8.33% of Basic + D.A, and the maximum bonus that can be paid is 20% of Basic + DA. The ceiling limit is Rs. 3500.00.
For example, for a bonus paid at 8.33%, the calculation is as follows:
- If the employee's Basic + DA is 3500, then the bonus is 292 pm.
- If the employee's Basic + DA is 3500 or greater, the bonus is still limited to 292 pm.
- If the employee's Basic + DA is 3000, then the bonus is 250 pm.
Another example is for a bonus paid at 20%, the calculation is as follows:
- If the employee's Basic + DA is 3500, then the bonus is 700 pm.
- If the employee's Basic + DA is 3500 or greater, the bonus is still limited to 700 pm.
- If the employee's Basic + DA is 3000, then the bonus is 600 pm.
I hope this is clear.
Regards,
Giri
From India, Bangalore
Acknowledge(0)Amend(0)
Bonus Benefit Inquiry
For example: In the year 2010, the company's production started. From which year will the bonus benefit be given? Is there a specific time period?
Furthermore, once the bonus is given, is it required to give it every year? Is it mandatory?
Requesting you to please clarify.
Regards,
Murali
From India, Hyderabad
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For example: In the year 2010, the company's production started. From which year will the bonus benefit be given? Is there a specific time period?
Furthermore, once the bonus is given, is it required to give it every year? Is it mandatory?
Requesting you to please clarify.
Regards,
Murali
From India, Hyderabad
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