What is the maximum amount that can be paid as statutory bonus annually? Is there a ceiling limit for the same.
From India, Bengaluru
Acknowledge(0)
Amend(0)
3From India, Bengaluru
Acknowledge(0)Amend(0)
There is no maximum limit for a bonus. However, statutory bonus shall not exceed 20% of the wages paid during the year. Wages for the calculation of the bonus shall mean Rs 7000 per month or the minimum wages notified by the respective state government, whichever is higher. If no minimum wages have been notified by your state for your industry, then you can take Rs 7000 as the base for the calculation of the bonus. Depending on the availability of profits, you can fix the rate of the bonus, which shall not be lower than 8.33%.
From India, Kannur
Acknowledge(0)Amend(0)
From India, Kannur
Acknowledge(0)Amend(0)
There is no one who would object if you wish to pay a bonus much higher than the minimum of 8.33% and maximum of 20% of the salary stipulated in the Payment of Bonus Act, 1965. In medium and small enterprises, it's common to pay lump sum amounts as they prefer, without calculating it as a percentage of the salary and without being limited to 20%.
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Unified Annual Returns Under Payment Of Bonus Act, 1965.pdf
Amendment to Payment of Bonus Act 2015.jpg