Dear Seniors,
I have few queries, which are :-
CASE 1 : From Bonus Act, it can well derived that if any employee who earns below salary Rs 10000/- is eligible for bonus.
Q. Does the "Term salary below Rs 10000/-" refers to an employee's total monthly Salary ? If yes, will the calculation be based on BASIC salary Head ?
or
Q. Does the "Term salary below Rs 10000/-" refers to an employee's monthly Basic -salary Head ?
Q. Another question is which, I vaguely understand is that - in case of the calculation part, will Rs 3500/- will be taken into account if basic salary is LESS than Rs 3500 ? And what will be the calculation if the basic salary in above Rs 3500 ?
Q. Which institutions are exempted from payment of bonus?
I heard Hospitals, Social welfare institutions, Chambers of the Commerce , Indian Red Cross society or other institutions of a like nature, universities and educational institutions are exempted from payment of Bonus..
From India, Bangalore
1I have few queries, which are :-
CASE 1 : From Bonus Act, it can well derived that if any employee who earns below salary Rs 10000/- is eligible for bonus.
Q. Does the "Term salary below Rs 10000/-" refers to an employee's total monthly Salary ? If yes, will the calculation be based on BASIC salary Head ?
or
Q. Does the "Term salary below Rs 10000/-" refers to an employee's monthly Basic -salary Head ?
Q. Another question is which, I vaguely understand is that - in case of the calculation part, will Rs 3500/- will be taken into account if basic salary is LESS than Rs 3500 ? And what will be the calculation if the basic salary in above Rs 3500 ?
Q. Which institutions are exempted from payment of bonus?
I heard Hospitals, Social welfare institutions, Chambers of the Commerce , Indian Red Cross society or other institutions of a like nature, universities and educational institutions are exempted from payment of Bonus..
From India, Bangalore
A employee is eligible for Bonus - should be mininmum 30 days working in a calendra year and paid on Basic + DA .
Employees drawing wages upto Rs.10,000 per month or less is eligible for bonus .
However for calcuation purpose Rs.3500 per month maximum will be considered for the bonus calculation , even if an employee is drawing upto Rs.10,000 per month. Bonus has to be paid @ 8.33 % of the salary minimum.
The Act is not applicable to employees of LIC , General insurance, Red cross, universities & educational institutions , chambers of commerce, social welfare institutions.
From United Kingdom, London
Employees drawing wages upto Rs.10,000 per month or less is eligible for bonus .
However for calcuation purpose Rs.3500 per month maximum will be considered for the bonus calculation , even if an employee is drawing upto Rs.10,000 per month. Bonus has to be paid @ 8.33 % of the salary minimum.
The Act is not applicable to employees of LIC , General insurance, Red cross, universities & educational institutions , chambers of commerce, social welfare institutions.
From United Kingdom, London
Dear Ningjems, Please read the attachment FAQ regarding Payment of Bonus Act. Hope your doubts may clear with this. Thanks & regards, Jaspal Negi
From India, Mumbai
From India, Mumbai
Hi Jaspal,
It's really very informative doc for the rules and calculations for the bonus and it will clear all the doubts about bonus.
Also, as companies are using advance HR and Payroll software must be having a module for bonus or incentives that makes them easy calculations and alerts for the deserving / eligible employees for bonus.
From India, Lucknow
It's really very informative doc for the rules and calculations for the bonus and it will clear all the doubts about bonus.
Also, as companies are using advance HR and Payroll software must be having a module for bonus or incentives that makes them easy calculations and alerts for the deserving / eligible employees for bonus.
From India, Lucknow
DEAR SIR
If the employee has put in 8 months service and is employed by cooperative society registered under society registration act whether bonus is compulsorily to be paid. The employee draws 6500 a month.
Pl clarify
Bala
From India, Mumbai
If the employee has put in 8 months service and is employed by cooperative society registered under society registration act whether bonus is compulsorily to be paid. The employee draws 6500 a month.
Pl clarify
Bala
From India, Mumbai
Dear Ningjems,
As per the bonus Act 1965, every employer is bound to pay to 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, whether or not the employer has any allocable surplus in the accounting year.
1) Bonus Act is applicable to every employee drawing monthly salary or wage(i.e. basic + DA) of Rs.3500/- upto Rs.10000.
2) The term salary in this act means only the basic and DA(basic+DA)
3) Monthly basic salary cannot be less than Rs 3500/- as the Minimum Wage Act come in the picture.(every state has a minimum wage of more than Rs.3500)
From India, Mumbai
As per the bonus Act 1965, every employer is bound to pay to 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, whether or not the employer has any allocable surplus in the accounting year.
1) Bonus Act is applicable to every employee drawing monthly salary or wage(i.e. basic + DA) of Rs.3500/- upto Rs.10000.
2) The term salary in this act means only the basic and DA(basic+DA)
3) Monthly basic salary cannot be less than Rs 3500/- as the Minimum Wage Act come in the picture.(every state has a minimum wage of more than Rs.3500)
From India, Mumbai
Dear Bala, Yes, the employee is entitled to get a minimum bonus of 8.33% of his salary or wage(basic + DA).
From India, Mumbai
From India, Mumbai
Dear Sir If employee is earning salary more than 10000 salary is it compulsory to give him bonus. Regards, Shankar
From India, Mumbai
From India, Mumbai
Dear Sankar, NO, if an employee is drawing a wage of more than Rs. 10,000/-(Basic + DA) per month then it is not compulsory to give him bonus.
From India, Mumbai
From India, Mumbai
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