Bonus Eligibility and other details
- There is no minimum salary limit for bonus eligibility.
- The maximum salary limit is Rs.10000/-
- Basic + DA is considered for computing Bonus. If Basic + DA exceeds Rs.10000/- then he is not eligible for bonus. However there is a wage ceiling of Rs.3500/- for payment of bonus. If an employee draws Rs.3500/- or more up-to Rs.10000/- then his wage should be deemed as Rs.3500/- only. In other words if he draws Rs.4000/- his wage will be Rs.3500/- only for computation of bonus. If he draws less than Rs. 3500/- say Rs.3400/- then the wage will be Rs.3400/- for computation of bonus.
- The minimum % of bonus is 8.33% of annual Basic + DA and the maximum % is 20%.
- As per bonus act the maximum bonus that a person can earn is Rs.8400/- per Annam i.e Rs.3500/- X 12 = Rs.42000/- @ 20% = Rs.8400/-.
- Ex-Gratia is something that the management is willing to give voluntarily even if the employee is not eligible to receive bonus. The employer may not impose the wage ceiling of Rs.3500/- and may be willing to pay on the actual earnings of the employee even if it exceeds Rs.3500/-. He may also be willing to pay bonus if he exceeds Rs.10000/-.
Search Sample Formats: