14 August 2009
Hi..can anyone plz confirm regarding the eligibility of an employee in order to get bonus as per the Bonus Act 1965..?? I want to know whether the salary of the employee should not be more than Rs.3500 in order to be eligible for bonus or whether the max limit is Rs.10000??? Request for urgent response...
Amita
Guest
Guest
(Expert)
14 August 2009
Dear Amita
There are two things in Payment of Bonus Act 1965:
(a) The eligibility to receive the bonus: Now this is Rs 10,000 per month .
(b) The amount of salary to be taken to calculate the bonus: This is maximum Rs 3500.
Lets take an example to understand it better.
(a) Mr. XYZ earns Rs 2500 per month. Calulate the minimum bonus.
Answer: Minimum Bonus= 8.33% of Rs 2500= Rs208 p.m
(b) Mr. ABC earns Rs 10,000 per month. Calculate the minimum bonus
Answer: The mimimum bonus shall be Rs 3500*8.33%=Rs 291
CAclubindia
