Many company follow the practise of paying bonus on monthly basis, some pay minimum 8.33% of Rs 7.000 i.e Rs 583/- or some 20% of Rs 7,000/- i.e Rs 1,400/- per month.Ĭapping of Rs 7000/- means even if an employee is falling under Bonus (Basic is less than or equal to 21000), he will be paid bonus on maximum Rs 7000/. Have you ever think what is the Capping amount of Bonus? If no, then please refer the description given below-įor the payout of bonus, capping is at 7000/-.Įvery employee should get minimum of 8.33% of wages capped at Rs 7,000/- even if there is loss and maximum of 20% of wages capped at Rs 7,000/- in an accounting year.
