Bonus - eligibility, limits

Hi All,

What is the eligibility to get bonus? Is there a minimum and maximum bonus amount limit that is decided?

Help me with your suggestions.

Ramya.

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Hi Ramya,

Please find the below link for your reference. This will help you in explaining in detail Bonus Applicability and Calculations.

Bonus Act Applicability and Calculation

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Please find details for Payment of Bonus as below

APPLICABILITY 20 OR MORE EMPLOYEES EMPLOYED AT ANY DAY DURING THE YEAR
ELIGIBILITY EMPLOYEE EARNING A SALARY UPTO RS 21000 PER MONTH
MINIMUM BONUS 8.33% OF SALARY OR WAGE (RS. 7000) DURING THE ACCOUNTING YEAR OR RS. 100 WHICHEVER IS HIGHER
MAXIMUM BONUS 20% OF SALARY OR WAGE DURING THE ACCOUNTING YEAR
WAGE CALCUALTION RS 7000 PER MONTH OR MINIMUM WAGE FOR SCHEDULED EMPLOYEMENT, WHICHEVER IS HIGHER
TIME LIMIT FOR PAYMENT OF BONUS WITHIN 8 MONTHS OF CLOSING OF ACCOUNTING YEAR
FORMS FORM A- COMPUTATION OF ALLOCABLE SURPLUS

FORM B- SET OFF & SET ON
FORM C- DETAILS OF BONUS DUE, DEDUCTED & DISBURSED
FORM D - ANNUAL RETURN

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Hi Ramya,

Eligibility for bonus as described u/s 8 of the PB Act,1965 is that an employee should have worked for 30 working days in the particular accounting year for which bonus is claimed.

Similarly disqualification for bonus for any accounting year as contemplated u/s 9 of the Act is the employee’s dismissal from service due to fraud or riotous or violent behaviour while on the premises of the establishment or theft, misappropriation or sabotage of any property of the establishment. The Code on Wages,2019 adds the punishment, if any , awarded for an offence involving sexual harassment as a disqualification for bonus.

It is to be noted that the disqualification applies only to that particular accounting year during which the ponishment was awarded.

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Thanks @Umakanthan Sir for sharing your thoughts on this.

As shared by @Chethanbn we have a blog on this, also we have a statutory page for the same (The Payment of Bonus Act,1965)

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