What is the maximum amount that can be paid as statutory bonus annually? Is there a ceiling limit for the same.
From India, Bengaluru
3From India, Bengaluru
There is no maximum limit for bonus. But statutory bonus shall not exceed 20% of the wages paid during the year. Wages for the calculation of bonus shall mean Rs 7000 per month or the minimum wages notified by the respective state government whichever is higher. If, in respect of your industry, no minimum wages has been notified by your state, then you can take Rs 7000 as the base for calculation of bonus. depending upn the availability of profits you can fix the rate of bonus which shall not be lower than 8.33%.
From India, Kannur
From India, Kannur
There is no one who would block if you wish to pay bonus much more than the minimum of 8.33% and maximum of 20% of salary stipulated in the Payment of Bonus Act,1965. In medium, micro, small enterprises it's common paying lumpsum amounts as they like without working out as %age on salary without limiting to 20%.
From India, Bangalore
From India, Bangalore
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