Dear All, I Need one clarification about the Bonus... Contract labors we paid a bonus monthly basis as per the Bonus Act saying those who have completed 30 days that employees are eligible. For new joiners' first month makes them eligible or not?
From India, Chennai
From India, Chennai
When statutory bonus is payable on yearly basis, why should you pay it on monthly basis? It is not a good practice whether the employee is a regular workman or contract labor.
One gets eligibility for bonus only when he has worked for 30 working days in an accounting year.
From India, Salem
6018One gets eligibility for bonus only when he has worked for 30 working days in an accounting year.
From India, Salem
Dear Sir,
If an employee drawing wages/salary ( Basic + DA) Rs .20900 Per Month but while DA revised during October and employees salary/wages is Rs. 21200 Per Month in this case employee eligible for Bonus only six month or whole financial year because eligibility is 30 days worked and wages/salary drawn less then Rs. 21000/ Per Month.
Please advise under prescribed rules.
From India, New Delhi
If an employee drawing wages/salary ( Basic + DA) Rs .20900 Per Month but while DA revised during October and employees salary/wages is Rs. 21200 Per Month in this case employee eligible for Bonus only six month or whole financial year because eligibility is 30 days worked and wages/salary drawn less then Rs. 21000/ Per Month.
Please advise under prescribed rules.
From India, New Delhi
Dear Harendr,
Statutory bonus is payable yearly
on the basis of the total salary/wages received by an eligible employee during the entire accounting year.
As you know well, when the salary/wages exceeds the limit of Rs.21000-oo pm, the individual ceases to be an employee for the purpose of the PB Act,1965 and therefore, he is not eligible for bonus from the month his salary exceeded the threshold limit. But, he is eligible for bonus for the entire period during which his salary/wages remained at Rs.21000/= p.m or less within the accounting year.
Applying this rule, if the accounting year of your establishment is the Financial Year ( April - March of next calendar year ), the employee is eligible for bonus for the period from
April to the actual date of October after which his salary became Rs.21200/= due to the hike in D.A.
From India, Salem
Statutory bonus is payable yearly
on the basis of the total salary/wages received by an eligible employee during the entire accounting year.
As you know well, when the salary/wages exceeds the limit of Rs.21000-oo pm, the individual ceases to be an employee for the purpose of the PB Act,1965 and therefore, he is not eligible for bonus from the month his salary exceeded the threshold limit. But, he is eligible for bonus for the entire period during which his salary/wages remained at Rs.21000/= p.m or less within the accounting year.
Applying this rule, if the accounting year of your establishment is the Financial Year ( April - March of next calendar year ), the employee is eligible for bonus for the period from
April to the actual date of October after which his salary became Rs.21200/= due to the hike in D.A.
From India, Salem
Dear Colleague,
In addition to the very clear reply given by our Learned Senior Colleague, one more point kindly bear it in mind:
As far as contract employees are concerned, they belong to the contractor's establishment and bonus is to be paid by the contractor based on his profits. (The profit of Principal Employer many not have relevance for contract workers). All other eligibility conditions applicable to the contract workers.
Hence take care suitably and ensure that the the Bonus is paid by Contractor. Of course, the contractor will claim it from Principal employer as part of the cost of his establishment.
All the Best and God Bless,
Dr.P.Sivakumar
DrSIVAGLOBALHR
Tamil Nadu
From India, Chennai
In addition to the very clear reply given by our Learned Senior Colleague, one more point kindly bear it in mind:
As far as contract employees are concerned, they belong to the contractor's establishment and bonus is to be paid by the contractor based on his profits. (The profit of Principal Employer many not have relevance for contract workers). All other eligibility conditions applicable to the contract workers.
Hence take care suitably and ensure that the the Bonus is paid by Contractor. Of course, the contractor will claim it from Principal employer as part of the cost of his establishment.
All the Best and God Bless,
Dr.P.Sivakumar
DrSIVAGLOBALHR
Tamil Nadu
From India, Chennai
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