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

• 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

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 (opens in a new tab)