BONUS PAYMENT AMOUNT

Save Share

This query is : Resolved

Quick Summary

In India, bonus payments are calculated based on the minimum wages set by the Minimum Wages Act, as per a 2010 Supreme Court ruling. The Bonus Act specifies a minimum bonus of 8.33% and a maximum of 20%, though paying the minimum bonus of 8.33% may be sufficient if agreed upon by the workers' union.

Chahat Khanna

Chahat Khanna (Querist)
Follow

24 October 2024 Query resolved and deleted?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

24 October 2024 No.
In 2010, the Supreme Court of India ruled that the calculation of bonus should be based on the minimum wages as stipulated under the Minimum Wages Act.

Chahat Khanna

Chahat Khanna (Querist)
Follow

25 October 2024 Query resolved and deleted.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

25 October 2024 In fact actual salary cannot be lower of minimum wage.
Secondly why to calculate based on 12%, the bonus act says minimum bonus should be 8.33% while max. can be upto 20%.

Chahat Khanna

Chahat Khanna (Querist)
Follow

25 October 2024 Resolved and deleted.

Chahat Khanna

Chahat Khanna (Querist)
Follow

25 October 2024 Resolved and deleted.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

25 October 2024 No need to pay more than minimum bonus of 8.33%, provided workers' union agrees to it.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now