Under Section 8 of the Payment of Bonus Act, 1965, every employer is bound to pay to every employee, in respect of an accounting year, a minimum bonus of -

Section 8 of the Payment of Bonus Act, 1965 provides that every employer shall be bound to pay to every employee in respect of the accounting year a minimum bonus which shall be 8.33 per cent of the salary or wage earned by the employee during the accounting year, or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year. The figure of 8.33 per cent corresponds to one-twelfth of the annual wage, and the payment is obligatory irrespective of the profitability of the employer.