06 August 2011
As per Sec-12 of Bonus Act for the employees having salary in between 3500-10000, salary for bonus calculation shall be Rs.3500.
Then if an employer making provision of bonus for such employees having salary in between 3500-10000 on their original salary (say employee having salary 8500 given min.bonus @8.33% of 8500 instead of 3500) then it is correct or not ???
06 August 2011
Employees drawing wages upto Rs. 10000.00 per month or less.For calculation purposes Rs. 3500.00 per month maximum will be taken even if an employee is drawing upto Rs. 10000 per month. {Section 12}
That means 3500*8.33%=291.55 would be the bonus, even if the wages is in between 3500-10000 per month and not salary, as per my understanding.
But {Section 10}says that 8.33% of the salary or Rs.100 (on completion of 5 years after 1st Accounting year even if there is no profit)
CAclubindia
