Ever since 1 April, 1993, the revised ceiling for eligibility for bonus of an employee remained Rs. 3,500/- per month albeit there has steep hike in the salaries/wages. In some States, like Delhi and Haryana, the prevailing minimum rates of wages even for an unskilled worker has now been above Rs. 7,000/- per month.

The employees, as employed through contractors in building operations who were excluded from the purview of the Act, have now been covered under the Payment of Bonus Act.

Admissible Bonus

Minimum Bonus
8.33% of the salary or wages during the accounting year.

The Minimum bonus to be paid even if there is no allocable surplus (except in case of new establishments)

Maximum Bonus
20% of the salary or wages during the accounting year

Time limit for payment of bonus
Bonus to be paid to eligible employees within 8 months from the end of financial year i.e. for the financial year ending in March, 2007 the bonus payment has to be made before the end of November, 2007