Bonus
Bonus is a mandatory payment to those employed in certain establishments on the basis of profits, production, or productivity and for matters connected therewith. Its is due for payment within 8 months of end of financial year i.e. before 30th Nov
Applicability
Section titled “Applicability”- Any Employee who has worked for greater than 30 days in a financial year
- Any person (other than an apprentice) employed on a salary or wage not exceeding Rs. 21,000 per month (Basic +DA and excluding any allowances)
In case if employees are dismissed by fraud, misconduct, or even absenteeism, they can be disqualified from paying the bonus.
Bonus Calculation
Section titled “Bonus Calculation”A minimum payment of 8.33% of Wage (Basic+VDA) or 7000, whichever is higher. It is capped a maximum of 20%
To Understand in more detail about the act, please here