When is an employee eligible for Statutory Bonus?
Eligibility:
1. Monthly Basic plus DA should be equal to or less than Rs. 21,000
2. The employee should be in permanent or full-time employment
3. In a financial year a minimum 30 working days are required
Percentage:
The Bonus act set Limits for Bonus one is a minimum of 8.33% and another is a maximum of 20%. We calculate bonus on Basic Salary in an accounting year.
The time limit for payment of bonus:
As per the Act, all amounts payable to an employee by the way of bonus, are to be paid within 8 months from the close of the accounting year the bonus should be paid to the employees.
