Eligibility: any employee who draws salary or wage up to Rs. 21,000 is eligible for claiming bonus Bonus calculation purpose: according to the 2015 Amendment, Ceiling amount ( maximum limit ) of Rs. 7000 is considered as wage or salary for calculation of bonus. percentage for calibration of bonus: 8.33% minimum or 20% maximum
The Payment of Bonus Act, 1965 is the principal act for the payment of bonus to the employees which was formed with an objective for rewarding employees for their good work for the organization. It is a step forward to share the prosperity of the establishment reflected by the profits earned by the contributions made by capital, management and labour with the employees.
- To improve statutory liability to pay bonus [reward for good work] in case of profits or losses.
- To prescribe formula for calculating bonus
- To prescribe Minimum & Maximum percentage bonus
- To provide of set off/set on mechanism
- To provide redressal mechanism