Dear friends and seniors,
can u give an example for calculation of bonus as per recent amendment?
I would like to have a clear idia about the conditions.
Waiting for reply :shock:
Thanks & Regards,
GrHrm
From India, Hyderabad
11can u give an example for calculation of bonus as per recent amendment?
I would like to have a clear idia about the conditions.
Waiting for reply :shock:
Thanks & Regards,
GrHrm
From India, Hyderabad
Dear Friend,
Kindly click on the following link, it will give you some required information,
https://www.citehr.com/download-list...t+in+Bonus+Act
Pls let me know was this information useful,,
If not let me try out more & give information,,,,
Regards
Mohamed Sardhar
91 93831 93832
From India, Coimbatore
Hello,
The recent amendment to the Payment of Bonus Act 1965 are yet in the form of an "Ordinance" though fully binding on all employers.
The said ordinance has four parts. But let me tell you that the method of "calculating" bonus is not changed. The applicability has changed in the following manner.
1) The changes are applicable from 1st April 2006 meaning that the bonus for the financial year 2006-2007 (payable before 30th November 2007) will have to be paid as per the provisions of the ordinance.
2) In the past the maximum salary/wage was Rs. 3500/- per month for being covered in the Act. This limit has been raised to Rs. 10,000/- This means that employees in receipt of salary/wage less than this amount would benefit from the amendment.
3) Derived bonus was in past payable at actual salary/wage upto Rs. 2500/- per month. If the salary/wage was greater that Rs. 2500/- p.m. but less than Rs. 3500/- p.m. then the bonus was payable as though the salary/wage was Rs. 2500/- p.n. only. And, if the salary/wage was greater than rs. 3500/- p.m. the concerned employee was NOT eligible to receive bonus!
4) Now with this ordinance/amendment the position is that if the salary/wage is below Rs. 3500/- then the bonus will be payable on the actual salary/wage. If the salary/wage is greater than Rs. 3500/- p.m. but less than rs. 10,000/- p.m. then the bonus will be paid as though the salary/wage was Rs. 3500/- p.m. only and if the salary/wage is greater than rs. 10,000/- p.m. then one would not be eligible to receive any bonus!
I hope the position is now clear to you. Kindly do not forget to look up the definition of wage under the act. It is "Basic Wage+D.A."
If you have queries, please do not hesitate in raising them.
Regards
samvedan
November 3, 2007
From India, Pune
The recent amendment to the Payment of Bonus Act 1965 are yet in the form of an "Ordinance" though fully binding on all employers.
The said ordinance has four parts. But let me tell you that the method of "calculating" bonus is not changed. The applicability has changed in the following manner.
1) The changes are applicable from 1st April 2006 meaning that the bonus for the financial year 2006-2007 (payable before 30th November 2007) will have to be paid as per the provisions of the ordinance.
2) In the past the maximum salary/wage was Rs. 3500/- per month for being covered in the Act. This limit has been raised to Rs. 10,000/- This means that employees in receipt of salary/wage less than this amount would benefit from the amendment.
3) Derived bonus was in past payable at actual salary/wage upto Rs. 2500/- per month. If the salary/wage was greater that Rs. 2500/- p.m. but less than Rs. 3500/- p.m. then the bonus was payable as though the salary/wage was Rs. 2500/- p.n. only. And, if the salary/wage was greater than rs. 3500/- p.m. the concerned employee was NOT eligible to receive bonus!
4) Now with this ordinance/amendment the position is that if the salary/wage is below Rs. 3500/- then the bonus will be payable on the actual salary/wage. If the salary/wage is greater than Rs. 3500/- p.m. but less than rs. 10,000/- p.m. then the bonus will be paid as though the salary/wage was Rs. 3500/- p.m. only and if the salary/wage is greater than rs. 10,000/- p.m. then one would not be eligible to receive any bonus!
I hope the position is now clear to you. Kindly do not forget to look up the definition of wage under the act. It is "Basic Wage+D.A."
If you have queries, please do not hesitate in raising them.
Regards
samvedan
November 3, 2007
From India, Pune
Hi Samvedan!!!
as you have mentioned in your point 4
"If the salary/wage is greater than Rs. 3500/- p.m. but less than rs. 10,000/- p.m. then the bonus will be paid as though the salary/wage was Rs. 3500/- p.m. only and if the salary/wage is greater than rs. 10,000/- p.m. then one would not be eligible to receive any bonus!"
can you explaing me which is written in Section 10 and 11 of Bonus ACT 1965
Section 10
a minimum bonus which shall be 8.33 percent 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:
Section 11
in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent. of such salary or wage.
I want to point on the salary paid during the year
as you have mentioned in your point 4
"If the salary/wage is greater than Rs. 3500/- p.m. but less than rs. 10,000/- p.m. then the bonus will be paid as though the salary/wage was Rs. 3500/- p.m. only and if the salary/wage is greater than rs. 10,000/- p.m. then one would not be eligible to receive any bonus!"
can you explaing me which is written in Section 10 and 11 of Bonus ACT 1965
Section 10
a minimum bonus which shall be 8.33 percent 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:
Section 11
in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent. of such salary or wage.
I want to point on the salary paid during the year
Hello,
Conceptually, Bonus is a "profit sharing scheme" sanctified by the State in the form payment of Bonus Act 1965. While doing so, the state has brought in the concept of "deferred wage" into the scheme of the act.
Bonus is a substitution of the old systems of "Bakshis" that employrers used to give on the festive occasion. Naturally each employer could follow a different system and there could be differential amounts paid to the employees employed under the same employer. In order to remove to a large extent such non-judicious differential systems that started to cause severe dissatisfaction amongst the employees, this law was brought in to standardize and regularize such payments. That is the background of this act.
Tne concept minimum bonus (@8.33%) is the deferred wage that covered employees will get even if the organization makes a loss. This percentage is to be applied to the bonusable salary/wage of the employee during the concerned financial year. The law also provides that if an employee is employed under an employer for even 30 days-in the aggregate-during that financial year he would be entitled the declared bonus or the minimum bonus as the case may be. The amount Rs. 100/- looks too meagre as bonus, but it was brought into the act so may years ago. That is to say if an employee, based on the salary/wage received by him during that financial year becomes entitled to less than Rs. 100/- as bonus (on applying 8.33%) then the law states that he should get at least Rs. 100/-.
Is the point clear now?
Regards
samvedan
November 3, 2007
From India, Pune
Conceptually, Bonus is a "profit sharing scheme" sanctified by the State in the form payment of Bonus Act 1965. While doing so, the state has brought in the concept of "deferred wage" into the scheme of the act.
Bonus is a substitution of the old systems of "Bakshis" that employrers used to give on the festive occasion. Naturally each employer could follow a different system and there could be differential amounts paid to the employees employed under the same employer. In order to remove to a large extent such non-judicious differential systems that started to cause severe dissatisfaction amongst the employees, this law was brought in to standardize and regularize such payments. That is the background of this act.
Tne concept minimum bonus (@8.33%) is the deferred wage that covered employees will get even if the organization makes a loss. This percentage is to be applied to the bonusable salary/wage of the employee during the concerned financial year. The law also provides that if an employee is employed under an employer for even 30 days-in the aggregate-during that financial year he would be entitled the declared bonus or the minimum bonus as the case may be. The amount Rs. 100/- looks too meagre as bonus, but it was brought into the act so may years ago. That is to say if an employee, based on the salary/wage received by him during that financial year becomes entitled to less than Rs. 100/- as bonus (on applying 8.33%) then the law states that he should get at least Rs. 100/-.
Is the point clear now?
Regards
samvedan
November 3, 2007
From India, Pune
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