Bonus Calculation

Hi, I need help with the following:

From Bonus Act, it can well derived that if an employee getting basic salary of Rs 9000 PM than in that case Rs. 3500 PM should be taken into account for calculation of Bonus. So the calculation of Bonus for an employee who has worked for the entire accounting year will be: Rs.3500 * 12 = 42000*8.33% = Rs. 3,500/- per annum.

If an employee has worked for 5 months in the last financial year, will the bonus calculation be Rs. 3500 *5= 17500*8.33% = Rs. 1458/- or it should be Rs.3500/- as minimum bonus per year.

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Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)

Rs.1458 as per Section 10 of  Payment Bonus Act, 1965

And further other provison of the act requiires that if a worker has not worked the whole year than minimum bonus would be calculated as for the period for which the employee has worked provided the employee has worked for minimum days as required to be eligible for bonus.

I hope your query has been solved.

With regards,



According to sec.10 subject to the other provision of the act, every employer shall be bound to pay to every employee in respect of every accounting year, minimum bonous which shall be 8.33% of the salary or wage earned by the Employee during the accounting year or rs. 100, whichever is higher, whether or not the employer has any allocable surplus in the accounting year..

Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)

Hi Shrikant as bonus calculated for 5 months is greater than 100 so question of it and also as it is shown in above calculation 8.33 is taken as a percentile by Mr.Gyan

So both issues are included.


dear sir,


i want to know eligibility of employee for salary bonus for current year.  is their any criteria for not paying of bonus.

Accounts head


what percentage of basic salary is to be taken for calculation of bonus to employee.

can a co. or firm deny bonus on any grounds

what is the maximum salary slab for an employee to claim bonus

kindly reply...


Any employee who earns below Rs 10000/-  (bonus act amended in Feb 2007) is eligible for bonus.

As for the calculation part. Actual salary if below Rs 3500 or Rs 3500 if salary above Rs 3500 but below Rs 10000. 

Minimum bonus 8.33% & Maximum bonus 20% 

Employees earning above Rs 10000 Legally not entitled to bonus


pls explain the fourth deduction column of 'other sums under schedule 3' which is deducted from calculated gross profit


suppose a employee earn 3500 in a month..
during a month he have taken excess leave..
eventually his salary is deducted to 3200..
now on which amt.
bonus is calculated..
plz reply



bonus calculation




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