Diwali bonus

Querist : Anonymous (Querist) 16 October 2011 This query is : Resolved
Dear Sir,
My queary is a company running last 5 + year But it is not give diwali bonus as per govt. act, it is telling you are not Eligible to diwali bonus.
please tell me we are not Eligible to bonus. In case we are Eligible to bonus but i do now?

Follow Query

Report Abuse

ajay sethi (Expert) 16 October 2011
The Act, therefore, at present provides for payment of bonus to only those employees
whose salary or wage does not exceed ten thousand rupees per mensem. Further, section 12
read with section 10 provides that the percentage of minimum bonus, which at present is
8.33 per cent., payable to an employee shall be calculated by taking the maximum salary or
wage as three thousand and five hundred rupees per mensem even if the salary or wage
exceeds Rs. 3500/-.

Again as per act, bonus should be min 8.33% to 20% max. with a ceiling of Rs. 8400/-. whatever goes above is upto the management decision