Hi all, can any one tell me in bonus act bonus is calculated in salary Gross salary or Basic salary? Really appreciate if any one help me. Regards, Himal
From India, Bangalore
Acknowledge(0)
Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Hi Mr. Himalpandit,
As per the Bonus Act, the minimum bonus to be paid is 8.33% of BASIC + D.A. The minimum ceiling is Rs. 3500.00. An employee drawing more than Rs. 3500 as his basic and DA and other allowances has to be paid only Rs. 3500/- as the sealing rate and not more.
Bonus is a discretionary part of the organization's management. They can pay a full 1-month salary. Some organizations even pay 3 months' bonus. As per Income Tax rules, the bonus paid by a company allowed is up to 20% of BASIC + DA.
Mohan Rao Manager HR
From India, Visakhapatnam
Acknowledge(0)Amend(0)
24As per the Bonus Act, the minimum bonus to be paid is 8.33% of BASIC + D.A. The minimum ceiling is Rs. 3500.00. An employee drawing more than Rs. 3500 as his basic and DA and other allowances has to be paid only Rs. 3500/- as the sealing rate and not more.
Bonus is a discretionary part of the organization's management. They can pay a full 1-month salary. Some organizations even pay 3 months' bonus. As per Income Tax rules, the bonus paid by a company allowed is up to 20% of BASIC + DA.
Mohan Rao Manager HR
From India, Visakhapatnam
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Employee's Compensation Act-2009.pdf
BONUS CALCULATION FOR W.B.Govt employee for 2010-2011.xls
THE EMPLOYEE COMPENSATION ACT.docx