I would like to know if an employee joins in June and is on probation until December, and then quits the job, will they be eligible for the bonus? Please also suggest the criteria for the bonus along with the formula.
From India, Bagpat
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3From India, Bagpat
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Dear Jyoti,
Statutory bonus is related only to the minimum number of days (30 days) actually worked by any person falling within the definition of the term "employee" under the Payment of Bonus Act, 1965 in an Accounting Year. It is not related to the nature of his employment such as permanent, probationer, temporary, etc.
From India, Salem
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Statutory bonus is related only to the minimum number of days (30 days) actually worked by any person falling within the definition of the term "employee" under the Payment of Bonus Act, 1965 in an Accounting Year. It is not related to the nature of his employment such as permanent, probationer, temporary, etc.
From India, Salem
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Dear Jyoti,
Was the said employee eligible to receive the statutory bonus under the Payment of Bonus Act? If they earn less than Rs. 21,000 per month and have worked for a minimum of 30 days in the financial year, they are eligible for the bonus declared for the financial year 1819, payable between April 2019 and November 2019.
The minimum statutory bonus would be Rs. 7,000 or the minimum wages, whichever is higher. Let's say the minimum wages in your region are Rs. 8,500; in this case, the minimum bonus shall be Rs. 8,500. The bonus calculation will be on an actual attendance (pro rata) basis. Here, all authorized leaves, offs, and holidays are to be considered as presence; only unauthorized absences, against which wages have been deducted, will be considered as absence.
Let's assume that for the period from June 1st to December 31st, the employee has full attendance. So, their attendance is 214 days. Now, the per day rate for Rs. 8,500 would be Rs. 279.60. Your company has declared a minimum bonus of 8.33%.
279.60 x 214 = 59,834.4 @ 8.33% = Rs. 4,984.
Hope this helps.
Shailesh Parikh
99 98 97 10 65
Vadodara
From India, Mumbai
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Was the said employee eligible to receive the statutory bonus under the Payment of Bonus Act? If they earn less than Rs. 21,000 per month and have worked for a minimum of 30 days in the financial year, they are eligible for the bonus declared for the financial year 1819, payable between April 2019 and November 2019.
The minimum statutory bonus would be Rs. 7,000 or the minimum wages, whichever is higher. Let's say the minimum wages in your region are Rs. 8,500; in this case, the minimum bonus shall be Rs. 8,500. The bonus calculation will be on an actual attendance (pro rata) basis. Here, all authorized leaves, offs, and holidays are to be considered as presence; only unauthorized absences, against which wages have been deducted, will be considered as absence.
Let's assume that for the period from June 1st to December 31st, the employee has full attendance. So, their attendance is 214 days. Now, the per day rate for Rs. 8,500 would be Rs. 279.60. Your company has declared a minimum bonus of 8.33%.
279.60 x 214 = 59,834.4 @ 8.33% = Rs. 4,984.
Hope this helps.
Shailesh Parikh
99 98 97 10 65
Vadodara
From India, Mumbai
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Here it is assumed that the employee has worked from june 18 to dec 18. If it is june 17 to Dec 17 than the Bonus is payable from April 18 to Nov 18
From India, Mumbai
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From India, Mumbai
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According to my perspective, it varies from situation to situation. In general, if an employee is fulfilling the employability clause (as per the company's code of conduct), leaves the company on a positive note, and meets the criteria for the number of working days, then the employee is surely eligible for the bonus.
Regards,
M. J. Dhadwal
From India, Chandigarh
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Regards,
M. J. Dhadwal
From India, Chandigarh
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No matter whether one is in probation or in roll, if the candiadate has put 30 days working is eligible
From India, Mumbai
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From India, Mumbai
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Dear HR Professionals/ Recruiters/Trainers and Management Come and join POSH for further information please connect. Thanks Radha 9811255029
From India, New Delhi
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From India, New Delhi
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How is he eligble for bonus? Can any one describe it? As per bonus act a person should be complete minimum one year in the organisation then he is eligible for bonus.
From India, Delhi
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From India, Delhi
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Dear Member,
According to Section 8 of the Bonus Act, 1965, an employee who has worked for 30 days or more in an accounting year for which bonus is to be paid to the employees shall be entitled to receive a bonus. Section 8 may be read as follows:
8. Eligibility for bonus - Every employee shall be entitled to be paid by their employer in an accounting year, a bonus, in accordance with the provisions of this Act, provided they have worked in the establishment for not less than thirty working days in that year.
Regards,
R N KHOLA
From India, Delhi
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According to Section 8 of the Bonus Act, 1965, an employee who has worked for 30 days or more in an accounting year for which bonus is to be paid to the employees shall be entitled to receive a bonus. Section 8 may be read as follows:
8. Eligibility for bonus - Every employee shall be entitled to be paid by their employer in an accounting year, a bonus, in accordance with the provisions of this Act, provided they have worked in the establishment for not less than thirty working days in that year.
Regards,
R N KHOLA
From India, Delhi
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Bonus is a sum of money added to a person's wages as a reward for good performance (Definition of Bonus).
If the employee is on probation, it means he may have recently joined, wherein he still needs to be assessed for his performance. Two or three months in the organization is too early to decide on his/her performance. Hence, a bonus is not applicable.
From India, Pune
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If the employee is on probation, it means he may have recently joined, wherein he still needs to be assessed for his performance. Two or three months in the organization is too early to decide on his/her performance. Hence, a bonus is not applicable.
From India, Pune
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