Section 10 of POB Act, 1965 : Section 10: Payment Of Minimum Bonus

Explanation using Example

Imagine a scenario where Priya works at a manufacturing company and her annual wage is ₹50,000. According to Section 10 of The Payment of Bonus Act, 1965, her employer is required to pay her a minimum bonus. The calculation would be 8.33% of her annual wage, which amounts to ₹4165. However, if this amount were less than ₹100, she would be entitled to ₹100 as her minimum bonus. Since ₹4165 is greater than ₹100, Priya would receive ₹4165 as her minimum bonus for the year.