Dear paul, Under the provisions of the Payment of Bonus Act, 1965 (hereafter referred to as Act) and consequent to the amendment of the wage ceiling notified in October 2006, all permanent employees who are on the rolls of the company and drawing Basic Salary less than or equal to Rs. 10,000/- per month become eligible for receiving the statutory bonus, as per ceiling.
The payment of statutory bonus should be at the rate of 8.33% (as mandated by the Act) of the annual basic salary as provided under the Act should be given. All permanent employees whose Basic Salary is greater than Rs. 3,500/- and less than or equal to Rs. 10,000/- per month should be paid bonus as if their Basic Salary is equivalent to Rs. 3,500/-. Employees whose Basic Salary is less than Rs. 3,500/- per month should be paid at the actual value of Basic Salary. Regards Ashish |
