Bonus Eligibility and Formulas

Meaning: Bonus is the extra payment or financial component which is received as a reward for doing one’s job well. The bonus usually comes along with the salary of the employee.

Eligibility:
1. If Basic is below 21000/- then eligibility for bonus pay.
2. If Basic is above 21000 then not eligibility for bonus pay.

Calculation:
1. If the organization is below 20 employees, then not mandatory for bonus pay.
2. Minimum Rate is 8.33% of Basic.
3. Maximum Rate is 20% of Basic.

Impotent Pont:
1. If any employee works for more than 30 days during a year eligible for a bonus.
2. Any employee who is engaged in any type of work, including managerial, skilled, or unskilled eligible for Bonus.
3. If an employee earns equal to or more than Rs.21000 per month eligible for bonus.

Bonus Eligibility and Formulas

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