Bonus issues

The payment of Bonus Act apply to –

1. every factory; and

       b.  every other establishment in which twenty or more persons are employed on any day during an accounting year.

So it applies even to partnership firm.

Minimum bonus shall be 8.33% of Basic Wages, basic wage for this purpose shall be limited to Rs.3500/-

Bonus is payable by every factory and every other establishment in which 20 or more persons are employed on any day during an accounting year;

Bonus to any employee is payable if his salary is up-to Rs.10,000/- per month.

It has to be calculated @ 8.33% to 20% (depending upon allocable surplus) of basic. For calculation purposes basic will be limited to maximum Rs.3500 even if the employee is drawing more than Rs.3500 pm.