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
From India, Bangalore
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 , A Employee drawing more than Rs.3500 as his basic and DA and other allowances, he has to be paid only Rs.3500/- sealing rate and not more.
Bonus is a discretion part of the organization management, they can pay full 1 month salary Or Some organization pay even 3 months bonus, As per Income Tax rules Bonus paid by a company allowed is up to 20% of BASIC + DA.
Mohan Rao
Manager HR
From India, Visakhapatnam
22As per the Bonus Act, the minimum bonus to be paid is 8.33% of BASIC + D.A. The minimum ceiling is Rs.3500.00 , A Employee drawing more than Rs.3500 as his basic and DA and other allowances, he has to be paid only Rs.3500/- sealing rate and not more.
Bonus is a discretion part of the organization management, they can pay full 1 month salary Or Some organization pay even 3 months bonus, As per Income Tax rules Bonus paid by a company allowed is up to 20% of BASIC + DA.
Mohan Rao
Manager HR
From India, Visakhapatnam
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Bonus act amendment gazette copy.pdf
THE PAYMENT OF BONUS ACT.doc