Maximum bonus payable under the payment of bonus act, 1965

Finance and Accounting Officer

Hi, as per sec 11 of the said Act, maximum bonus payable under the Act is 20% of salary; and as per sec 17, an employer is entitled to adjust any interim and customary bonus paid to his employees from the bonus payable under the Act. As per the wordings used in sec 17, employer has a right (not an obligation) to deduct such interim bonus from the bonus payable under the Act. Now my question is, whether the maximum bonus (as said in sec 11) shall include customary, or such other interim bonus paid to employees?



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