Query relating Bonus Act,1965

This query is : Resolved

AMITA GUPTA (Querist)
Follow

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

trust, this assists you.

Best Regards

CA Himanshu Garg
ca.hims@gmail.com

AMITA GUPTA

AMITA GUPTA (Querist)
Follow

15 August 2009 Thank you so much sir.. This has surely cleared my confusion. Thanx again for a prompt reply.

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok