what is the maximum limit upto which you can pay bonus
CA Sanjay Bag
(CHARTERED ACCOUNTANT)
(3340 Points)
Replied 14 August 2012
Where in respect of any AY refered to in Secion 10 of the Payment of Bonus Act,1965 , the allocable surplus exceeds the amount of minium bouns payable to the employees under that section , the employer shall, in lieu of such minimum bonus , be bound to pay to every employee in respect of that AY bonus which shall be an amount in proportion to the salary or wages earned by the employee during the AY subject to a maximum of twenty percent of such salary or wages.
akash vig
( IPCC STUDENT)
(79 Points)
Replied 21 August 2012
according to PAYMENT OF BONUS ACT
max bonus allowed is
20% OF THE SALARY / WAGES OF THE EMPLOYEE
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
