Section 7 - Substitution of new section for section 10

Minimum bonus entitlement requires employers to pay a statutory minimum to employees even without allocable surplus in specified year.

Employers must pay every employee a statutory minimum bonus for each accounting year with allocable surplus: not less than four per cent of salary or wage or one hundred rupees, whichever is higher, and where allocable surplus permits an amount proportionate to salary or wage subject to a maximum of twenty per cent. Employees under fifteen years of age receive a reduced minimum, substituting sixty rupees. Allocable surplus is computed by reference to amounts set on or set off in the three immediately preceding accounting years and the year in question as illustrated in the Third Schedule.