Maximum Bonus

Gokulakrishnan (Partner @ B.P.Rao&Co) (40 Points)

28 October 2009  

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" Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting; year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent, of such salary or wage."

Please tell me, assuming that there is sufficient allocable surplus , whether the company can pay bonus @ any rate between 8.33% - 20% or compulsarily the company has to pay 20%.

In other words, Whether the company can pay only 10% bonus even if there is sufficient surplus to pay 20% bonus

  Plz reply its urgent