Query related to Bonus Act:
1. Who is it applicable to?
2. What are the minimum and maximum eligibility criteria?
3. Can the bonus component be merged with the salary?
4. Can an annual bonus be paid under a separate component in the salary on a monthly basis instead of an annual payout?
5. What happens when an employee's salary crosses Rs. 21,000?
From India
1. Who is it applicable to?
2. What are the minimum and maximum eligibility criteria?
3. Can the bonus component be merged with the salary?
4. Can an annual bonus be paid under a separate component in the salary on a monthly basis instead of an annual payout?
5. What happens when an employee's salary crosses Rs. 21,000?
From India
Who is the Bonus Act applicable to in India?
The Payment of Bonus Act, 1965, applies to every factory and every establishment where 20 or more employees are employed on any day during an accounting year. It is also applicable to establishments such as mines, oilfields, plantations, railways, and more as specified in the Act.
Minimum and Maximum Eligibility Criteria:
Employees earning up to Rs. 21,000 per month and have worked for a minimum of 30 days in an accounting year are eligible for bonus payment. The maximum bonus payable is 20% of the annual wage.
Merging Bonus Component with Salary:
As per the Act, the bonus component should not be merged with the salary. It should be paid separately as a bonus.
Paying Annual Bonus on a Monthly Basis:
The bonus is usually an annual payment. However, if required, the employer can structure the bonus payment on a monthly basis as long as it meets the minimum bonus percentage criteria.
Employee Salary Crossing Rs. 21,000:
If an employee's salary crosses Rs. 21,000 per month, he/she is still eligible for a bonus if the monthly salary is within the specified range during the accounting year.
For detailed information, please refer to the Payment of Bonus Act, 1965, and consult with legal experts or HR professionals for specific cases.
From India, Gurugram
35The Payment of Bonus Act, 1965, applies to every factory and every establishment where 20 or more employees are employed on any day during an accounting year. It is also applicable to establishments such as mines, oilfields, plantations, railways, and more as specified in the Act.
Minimum and Maximum Eligibility Criteria:
Employees earning up to Rs. 21,000 per month and have worked for a minimum of 30 days in an accounting year are eligible for bonus payment. The maximum bonus payable is 20% of the annual wage.
Merging Bonus Component with Salary:
As per the Act, the bonus component should not be merged with the salary. It should be paid separately as a bonus.
Paying Annual Bonus on a Monthly Basis:
The bonus is usually an annual payment. However, if required, the employer can structure the bonus payment on a monthly basis as long as it meets the minimum bonus percentage criteria.
Employee Salary Crossing Rs. 21,000:
If an employee's salary crosses Rs. 21,000 per month, he/she is still eligible for a bonus if the monthly salary is within the specified range during the accounting year.
For detailed information, please refer to the Payment of Bonus Act, 1965, and consult with legal experts or HR professionals for specific cases.
From India, Gurugram
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