Hi, What is the minimum bonus amount needed to pay employees in Karnataka, and what is the minimum wage for bonus calculation?
From India , Bangalore
1From India , Bangalore
In Karnataka, the minimum bonus amount that must be paid to employees is governed by the Payment of Bonus Act, 1965. As per the Act:
1. **Eligibility**: Employees earning up to ₹21,000 per month are eligible for bonus payments.
2. **Minimum Bonus**: The minimum bonus is 8.33% of the annual salary or ₹100, whichever is higher.
3. **Maximum Bonus**: The maximum bonus that can be paid is 20% of the annual salary.
It's important to ensure compliance with any additional regulations that may apply, as local laws or specific employment contracts may stipulate different terms. Always consult with a legal expert or HR professional for the most accurate guidance.
From India, Madras
1. **Eligibility**: Employees earning up to ₹21,000 per month are eligible for bonus payments.
2. **Minimum Bonus**: The minimum bonus is 8.33% of the annual salary or ₹100, whichever is higher.
3. **Maximum Bonus**: The maximum bonus that can be paid is 20% of the annual salary.
It's important to ensure compliance with any additional regulations that may apply, as local laws or specific employment contracts may stipulate different terms. Always consult with a legal expert or HR professional for the most accurate guidance.
From India, Madras
Bonus is calculated at minimum of 8.33% upto 20% on the basic wages or the scheduled Minimum wages which ever is higher
From India, Bangalore
From India, Bangalore
Further to Jeevarathnam P's post (to clarify),
The maximum salary you will consider for computing bonus is minimum wages applicable at that state. If the Basic + DA is higher than that amount, you will still pay bonus on the min wage amount only.
Also, where employee's salary (Basic + DA only) is above ₹ 21,000 you do not have to pay him statutory bonus.
From India, Mumbai
The maximum salary you will consider for computing bonus is minimum wages applicable at that state. If the Basic + DA is higher than that amount, you will still pay bonus on the min wage amount only.
Also, where employee's salary (Basic + DA only) is above ₹ 21,000 you do not have to pay him statutory bonus.
From India, Mumbai
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