Payment of Bonus

Yes. As per the  Payment of Bonus Act, minimum bonus of 8.33% is payable irrespective of the fact whether there are allocable surplus or not. that means even the loss making company shall have to pay minimum bonus.

Dear Sir,

Could you please confirm me the maximum limit for paying bonus.  Is it Rs. 6500/- or 10000/-.  (Basic +DA or including all allowances.

Regards

KRISHNAMOORTHY

A bill was introduced in Lok Sabha in 2007 to increase the limit of salalry to 10000 from 3500 in the definition of employee but it has not become a law so far as iI understand.

Mr. Murthy,

Section 11 explains about the maximum bonus. (1) 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 maximum of twenty per cent  of such salary or wage.

(2) In computing the allocable surplus under this section the amount set on or the amount set off under the provision of section 15 shall be taken into account in accordance with the provisions of that section.