Bonus act

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2018 What will be the Minimum and Maximum Bonus for the FY 2006-07. If the Employees Basic Below 10000 and Worked for 2 Months.

Please do the needful.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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11 April 2018 Bonus calculated Every employee not drawing salary/wages beyond Rs. 21,000 per month who has worked for not less than 30 days in an accounting year, shall be eligible for bonus for minimum of 8.33% of the salary/wages Proportionate reduction in bonus in certain cases.- Where an employee has not worked for all the working days in an accounting year, the minimum bonus of one hundred rupees or, as the case may be, of sixty rupees, if such bonus is higher than 8.33 per cent. of his salary or wage for the days he has worked in that accounting year,
shall be proportionately reduced.

all Factories and every other establishments, which employs twenty or more workmen. The Payment of Bonus Act, 1965 provides for a minimum bonus of 8.33 percent of wages. all employees whose salary is less than Rs. 21,000 per month fall under the criteria of bonus. If the salary of an employee exceeds Rs. 7,000, then bonus should be calculated on Rs. 7,000 only. If the salary of an employee is less than Rs. 7,000, then the bonus is to be calculated on the actual amount.The bonus calculation is Rs. 7,000 or the minimum wages as specified by the government, whichever is higher.

Minimum Bonus mount has been doubled to become Rs. 583( or 8.33% of the minimum wages, whichever is higher)