The new limit will be Rs. 15,000 basic as compared to the old 10,000 INR. The lower limit will be increased from 8.33 to 11%.
Bonus has to be paid at the rate of 8.33% of Basic as minimum and 20% of Basic as maximum. All those employees who are getting the Basic salary of upto Rs 10,000 per month are entitled to get Bonus. For the purpose of the calculation Bonus has to be paid on the maximum Basic of Rs 3500/-. e.g., if any employee is getting Basic salary in between Rs 3500 and 10,000 per month, he has to be paid the Bonus at the rate of 8.33% of Rs 3500/- as minimum or 20% of Rs 3500/- as maximum. But If he is getting basic salary less than Rs 3500/- he has to be paid Bonus on actual Basic.
Company Manager may also be eligible to receive bonus if he is covered under the definition of the employee as shown in section 2(13) of The Payment of Bonus Act, 1965.
As per The Payment of Bonus Act minimum Bonus will be 8.33% min level up-to Rs. 3500/- & max level to Rs. 8400/- @20%.
Minimum 30 days is eligible for Employees for getting Bonus Amount.
I am attaching bonus calculator which has formula in the excel sheet. All that you need to do is to put the month-wise attendance and the actual salary details.
Please find attached herewith all the formats as provided under the Payment of Bonus Rules.
Each of our employees who has been with our firm for a period of six months or more receives a Christmas bonus. Since you became a member of our sales department on August 1st, you will not be receiving a bonus this year.
I wanted to be sure that you understood this company policy prior to our disbursement of the holiday paychecks to avoid any misunderstanding or disappointment on your part.
We are very pleased with your work and while we would like to bend the rules, this would be unfair to all of our other personnel.
Attach herewith Form D (Bonus return).