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
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1From India , Bangalore
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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
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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
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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
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From India, Bangalore
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Further to Jeevarathnam P's post (to clarify), the maximum salary you will consider for computing bonus is the minimum wages applicable in that state. If the Basic + DA is higher than that amount, you will still pay bonus on the minimum wage amount only.
Also, where an 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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Also, where an 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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Karnataka State Minimum Wage 2018-19.pdf
Karnataka minimum wage 12-13.doc
Pan Singh Dangwal
Well explained dear Jeeva.