How it works
- Employees earning up to ₹21,000 a month who worked at least 30 days in the year are eligible.
- If wages are above ₹7,000 a month (or the minimum wage for the job, if higher), bonus is worked out as if wages were that amount.
- The minimum bonus is 8.33% or ₹100, whichever is higher, even without profit. The maximum is 20%.
- Bonus must be paid within 8 months of the end of the accounting year.
For example, an employee on ₹15,000 a month for 12 months gets at least ₹7,000 × 12 × 8.33% = ₹6,997.
Things to know
- The rate above 8.33% depends on the “allocable surplus” in the employer’s accounts. This tool does not work that out.
- This is a learning aid, not advice.