Dear All,
Greetings of the day!
I want to clear my doubts about the Bonus.
1. The bonus limit is between Rs 3500 to Rs 10000 (8.33% to 20%). If workers ask for a 20% bonus on their (Basic+DA) salary, can they compel the employer for 20%, or is it the employer's duty to pay 8.33% or 20%? Please guide me if there have been any amendments in the Bonus Act in 2013. If anybody can send me the latest update book.
2. If an employee has a Rs 3500 per month salary, then after a year, what would his bonus amount be? Is it Rs 3500 or does it change?
3. What is the basis of bonus calculation?
4. One person told me that the calculation is 3500*2=7000/total year days, then one day's salary comes. After that, you calculate one day's salary * number of days working. Is this right or wrong?
Thanks & Regards,
Jagdish
From India
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7Greetings of the day!
I want to clear my doubts about the Bonus.
1. The bonus limit is between Rs 3500 to Rs 10000 (8.33% to 20%). If workers ask for a 20% bonus on their (Basic+DA) salary, can they compel the employer for 20%, or is it the employer's duty to pay 8.33% or 20%? Please guide me if there have been any amendments in the Bonus Act in 2013. If anybody can send me the latest update book.
2. If an employee has a Rs 3500 per month salary, then after a year, what would his bonus amount be? Is it Rs 3500 or does it change?
3. What is the basis of bonus calculation?
4. One person told me that the calculation is 3500*2=7000/total year days, then one day's salary comes. After that, you calculate one day's salary * number of days working. Is this right or wrong?
Thanks & Regards,
Jagdish
From India
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Dear Friend I am attaching a pdf file related to Bonus Act prepared by Mr.Nanjegowda which will clear all your doubts Regards Alphonse
From India, Madras
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From India, Madras
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Dear Jagdish,
As per the Bonus Act of 1965, every employer is obligated to pay every employee a minimum bonus of 8.33% of the salary or wage earned by the employee (i.e., basic + DA) during the accounting year or one hundred rupees, whichever is higher, regardless of whether the employer has any allocable surplus in the accounting year.
Thank you.
From India, Mumbai
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As per the Bonus Act of 1965, every employer is obligated to pay every employee a minimum bonus of 8.33% of the salary or wage earned by the employee (i.e., basic + DA) during the accounting year or one hundred rupees, whichever is higher, regardless of whether the employer has any allocable surplus in the accounting year.
Thank you.
From India, Mumbai
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Dear Jagdish,
As per the Bonus Act of 1965:
1. Only an employee whose basic salary is less than or equal to Rs. 10,000 per month and has worked in the same organization for more than 30 days is eligible to receive a bonus.
2. Bonuses are paid based on bonus wages, with a ceiling limit of Rs. 3,500 per month. For instance, if an employee is earning Rs. 10,000 per month basic + DA and has worked for 30 days, their bonus amount would be capped at Rs. 3,500.
3. The bonus slab varies between a minimum of 8.33% and a maximum of 20%. The specific percentage is determined by the management based on the allocable surplus and available surplus indicated in Forms A and B of the financial statements.
4. It is important to note that asking for a salary of Rs. 3,500 per month is not feasible in the current situation. This is because we cannot pay less than the salary prescribed in the Minimum Wages Act. To the best of my knowledge, the minimum wages in all states exceed Rs. 3,500 per month.
I hope this clarifies any doubts you may have had regarding the Bonus Act.
From India, Delhi
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As per the Bonus Act of 1965:
1. Only an employee whose basic salary is less than or equal to Rs. 10,000 per month and has worked in the same organization for more than 30 days is eligible to receive a bonus.
2. Bonuses are paid based on bonus wages, with a ceiling limit of Rs. 3,500 per month. For instance, if an employee is earning Rs. 10,000 per month basic + DA and has worked for 30 days, their bonus amount would be capped at Rs. 3,500.
3. The bonus slab varies between a minimum of 8.33% and a maximum of 20%. The specific percentage is determined by the management based on the allocable surplus and available surplus indicated in Forms A and B of the financial statements.
4. It is important to note that asking for a salary of Rs. 3,500 per month is not feasible in the current situation. This is because we cannot pay less than the salary prescribed in the Minimum Wages Act. To the best of my knowledge, the minimum wages in all states exceed Rs. 3,500 per month.
I hope this clarifies any doubts you may have had regarding the Bonus Act.
From India, Delhi
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Dear Vikas Jain,
Point 2 that you have mentioned is incorrect.
"Bonus is always paid on bonus wages, which has a ceiling limit of up to Rs. 3500/- per month. For example, if an employee is receiving Rs. 10000/- per month as a basis + DA and worked for 30 days, then his bonus amount is equal to Rs. 3500/-."
If an employee's salary or wage (basic + DA) is Rs. 10000/- per month, then as per the rule, he is entitled to receive a minimum bonus of 8.33% or Rs. 100/-, whichever is higher. In this case, the employee is entitled to a monthly bonus of Rs. 833/- (i.e. 10000 * 8.33%) or an annual bonus of Rs. 9996/- (i.e. 10000 * 12 (number of months in a year) * 8.33%).
I hope this clarifies your doubt.
From India, Mumbai
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Point 2 that you have mentioned is incorrect.
"Bonus is always paid on bonus wages, which has a ceiling limit of up to Rs. 3500/- per month. For example, if an employee is receiving Rs. 10000/- per month as a basis + DA and worked for 30 days, then his bonus amount is equal to Rs. 3500/-."
If an employee's salary or wage (basic + DA) is Rs. 10000/- per month, then as per the rule, he is entitled to receive a minimum bonus of 8.33% or Rs. 100/-, whichever is higher. In this case, the employee is entitled to a monthly bonus of Rs. 833/- (i.e. 10000 * 8.33%) or an annual bonus of Rs. 9996/- (i.e. 10000 * 12 (number of months in a year) * 8.33%).
I hope this clarifies your doubt.
From India, Mumbai
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Presentation on Bonus is quiet informative, really appreciate the contributor and many thanks, hope to have similar flow of knowledge and information , B.Dakshina Murty
From India, Hyderabad
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From India, Hyderabad
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Dear Mr. Bhavik,
The bonus calculation should be made on Rs. 3,500/- not on Rs. 10,000/-. Rs. 10,000/- is the ceiling limit for eligibility, not for calculation. I agree with the statements of Mr. Jagdish.
Regards,
Dinesh
From India, Wardha
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The bonus calculation should be made on Rs. 3,500/- not on Rs. 10,000/-. Rs. 10,000/- is the ceiling limit for eligibility, not for calculation. I agree with the statements of Mr. Jagdish.
Regards,
Dinesh
From India, Wardha
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Dear Dinesh,
Thank you for clarifying this. I have checked the same with my seniors and you are right, "The bonus calculation should be made on Rs. 3500/- not on Rs. 10000/-. Rs. 10,000/- is the ceiling limit for eligibility, not for calculation."
Thanks once again.
From India, Mumbai
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Thank you for clarifying this. I have checked the same with my seniors and you are right, "The bonus calculation should be made on Rs. 3500/- not on Rs. 10000/-. Rs. 10,000/- is the ceiling limit for eligibility, not for calculation."
Thanks once again.
From India, Mumbai
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Dear Khushi,
If any employee completes 30 days of his service and his basic+DA is less than 10K, then the concerned employee is eligible for a bonus.
For example, the calculation as per month would be:
Rs. 3500 X 8.33% or 20% / Working days X worked days.
Hope this information helps you.
Regards,
Dinesh
From India, Wardha
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If any employee completes 30 days of his service and his basic+DA is less than 10K, then the concerned employee is eligible for a bonus.
For example, the calculation as per month would be:
Rs. 3500 X 8.33% or 20% / Working days X worked days.
Hope this information helps you.
Regards,
Dinesh
From India, Wardha
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