HR, Payroll, Attendance Software Forums Lenvica HRMS Ask a Question Annual Bonus for Employees and Income Tax Calculation with Bonus Reply To: Annual Bonus for Employees and Income Tax Calculation with Bonus

Nisa
Keymaster
Post count: 13

Hello Abaeze,

Your query relates to section 8 of the Payment of Bonus Act, 1965, which aims to regulate the amount of bonus paid to the persons employed in certain establishments based on their profits and productivity. The act is applicable to the whole of India for all establishments containing twenty or more persons employed on any day during the year.

Eligibility for Bonus – Any employee receiving salary or wages up to RS.21,000 per month and engaged in any work whether skilled, unskilled, managerial, supervisory, etc. is entitled to the bonus for every year if the employees have worked for not less than 30 working days in the same year.