respected seniors,
i am very much confused of this matter i am only the person who is handling h.r department i have one query to you bonus is the liability of employer or not if employer is not given bonus to his employee then employee takes action against
them i read that bonus is a type of gift it is the willingness of employer if he is satisfied services of employee then he will give them otherwise if they don't want to give bonus there is no liability of employer so please clear my views
From India
i am very much confused of this matter i am only the person who is handling h.r department i have one query to you bonus is the liability of employer or not if employer is not given bonus to his employee then employee takes action against
them i read that bonus is a type of gift it is the willingness of employer if he is satisfied services of employee then he will give them otherwise if they don't want to give bonus there is no liability of employer so please clear my views
From India
Dear Member,
It will be better to go through the Payment of Bonus Act, 1965 for your query.
R.N.KHOLA
Welcome Skylark Associates
From India, Delhi
363It will be better to go through the Payment of Bonus Act, 1965 for your query.
R.N.KHOLA
Welcome Skylark Associates
From India, Delhi
Dear Faraz,
This depends upon the policy and procedure of your company, if it is declared formally then it becomes the liability of the employer to pay according to the stipulated calculations.
Regards,
From Saudi Arabia, Riyadh
This depends upon the policy and procedure of your company, if it is declared formally then it becomes the liability of the employer to pay according to the stipulated calculations.
Regards,
From Saudi Arabia, Riyadh
Sub: Bonus is liability of Employer or not
Dear Sir,
As per the Bonus Act.1965, it is a bounden duty of the employer of a Factory or Establishment (if man power is 10/20) in every year subject min.of 8.33% Max.20% of their wages earned in the accounting year, depending on profits of the Co. If profitability is not there, Min.Bonus is a must.
Therefore it is a liability of the Employer.
D.GURUMURTHY
LL.,HR & IR Consultant.
From India, Hyderabad
Dear Sir,
As per the Bonus Act.1965, it is a bounden duty of the employer of a Factory or Establishment (if man power is 10/20) in every year subject min.of 8.33% Max.20% of their wages earned in the accounting year, depending on profits of the Co. If profitability is not there, Min.Bonus is a must.
Therefore it is a liability of the Employer.
D.GURUMURTHY
LL.,HR & IR Consultant.
From India, Hyderabad
Dear faraz, Bonus used to be viewed as a courtsey given for rendering satisfactory services. That was the age old concept. After the payment of Bonus came into vogue, it has become a statutory right. It is hence viwed as deferred wages, i.e., wages which have been deferred over the previously financial year and is given in lumpsum. The minumum statutory bonus is payable irrespective of the financial position.
Hope the above clarifies. For more details you may go through the Act and related articles for understanding the nuances.
Regards
KK
From India, Bhopal
Hope the above clarifies. For more details you may go through the Act and related articles for understanding the nuances.
Regards
KK
From India, Bhopal
Dear Faraz,
I am also new in HR family.But dear as much i know from my studies,it is must for an industry, which has completed five years from its date of establishment, to pay minimum bonus of 8.33%. But it can be exempted only in case of the sick industries(decided by government).
Regards
Umesh
From India, Gurgaon
I am also new in HR family.But dear as much i know from my studies,it is must for an industry, which has completed five years from its date of establishment, to pay minimum bonus of 8.33%. But it can be exempted only in case of the sick industries(decided by government).
Regards
Umesh
From India, Gurgaon
Hello Faraz,
Now all the companies have adopted the CTC modal. That means cost to the company. This CTC includes almost every earning of any employee.
And now companies are deducting around 8.33% from this CTC as a part of bonus, and this deduction will be given as bonus.
Normally if we include the bonus in the salary, so that make 13 salaries in 12 months, but with this CTC model, its 12 salaries in 12 months!!!
Thus, any company has adopted CTC model, so it's become company's liability to give the bonus. Or it will go on the company policy.
Thanks.
From India, Ahmadabad
Now all the companies have adopted the CTC modal. That means cost to the company. This CTC includes almost every earning of any employee.
And now companies are deducting around 8.33% from this CTC as a part of bonus, and this deduction will be given as bonus.
Normally if we include the bonus in the salary, so that make 13 salaries in 12 months, but with this CTC model, its 12 salaries in 12 months!!!
Thus, any company has adopted CTC model, so it's become company's liability to give the bonus. Or it will go on the company policy.
Thanks.
From India, Ahmadabad
as a matter of fact, when employee has completed atleast 30 days in a accounting year , then he gets the entitlement of bonus.
If the employee resigned from his responsiblity, then has to pay the minimum bonus i.e 8.33% of the basic.
Remember that those who have basic more than 10000 per month would not get the entitlement of bonus.
Example :- if an employee basic is 4500 per month
and he resigned grom his obligation on 25 dec 2011.
so you just have to consider that whether he has completed 30 days in 2011-12 accounting year. if he has surpassed that condition. then he deserves for bonus..
Disqualification of bonus may be possible in case of when employee found in major misconduct, theft, or sabotage of company assets etc....
as you are saying that if employer gets satisfaction from employee then its his willing to offer him, its a vague concept.
i think this is a monthly performance incentive/exgratia, what you talking about.
i hope you have got the point.
If you have any problem, then go to payment bonus act.
Thanks
Regards
Vikas Khatter
9034436151
From India, Delhi
If the employee resigned from his responsiblity, then has to pay the minimum bonus i.e 8.33% of the basic.
Remember that those who have basic more than 10000 per month would not get the entitlement of bonus.
Example :- if an employee basic is 4500 per month
and he resigned grom his obligation on 25 dec 2011.
so you just have to consider that whether he has completed 30 days in 2011-12 accounting year. if he has surpassed that condition. then he deserves for bonus..
Disqualification of bonus may be possible in case of when employee found in major misconduct, theft, or sabotage of company assets etc....
as you are saying that if employer gets satisfaction from employee then its his willing to offer him, its a vague concept.
i think this is a monthly performance incentive/exgratia, what you talking about.
i hope you have got the point.
If you have any problem, then go to payment bonus act.
Thanks
Regards
Vikas Khatter
9034436151
From India, Delhi
one thing i want to tell you that if your organization is new. so upto 5 years bonus is not compulsory, it only happen in such a case when your company disclosing the loss in Bonus register A and B, that both registered maintained by finance dept.
when you are erning loss then it is not mandatory, but after the completion 5 years of ur organisation, it has to be compulsory whether your organisation suffering loos or profit.
form c is applied for distribution of bonus.
form d is applied for bonus return.
regrds
Vikas Khatter
From India, Delhi
when you are erning loss then it is not mandatory, but after the completion 5 years of ur organisation, it has to be compulsory whether your organisation suffering loos or profit.
form c is applied for distribution of bonus.
form d is applied for bonus return.
regrds
Vikas Khatter
From India, Delhi
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