Dear Sir,
I wanted to know the applicability of Bonus Act & calculation of bonus.
Ours is properietor firm doing business of engineering works.
our company is doing well. Till last year we use to pay bimnus @ 8.33% per year but I come to know from one CA that since company is doing well we must pay bonus @20% per year.
I am confused about the calculation of bonus. Please advice me whether it is compulsary to pay bonus @ 20% per year if the company is doing well?
Thanking You,
KETAN TAMORE
From India, Mumbai
I wanted to know the applicability of Bonus Act & calculation of bonus.
Ours is properietor firm doing business of engineering works.
our company is doing well. Till last year we use to pay bimnus @ 8.33% per year but I come to know from one CA that since company is doing well we must pay bonus @20% per year.
I am confused about the calculation of bonus. Please advice me whether it is compulsary to pay bonus @ 20% per year if the company is doing well?
Thanking You,
KETAN TAMORE
From India, Mumbai
dear ketan
this act is applied to all establishment where 20 or more persons are working.
all employees who has worked for 30 days in a financial year are eligible to get bonus.
an employee whose basic+DA is less than 10000 rupees are entitle to get bonus
.all bonus calculation is done on 3500 it means if your basic +DA is 3500 or more than it will be considered 3500 for calculation of bonus,if it is less than 3500 than actual will be considered for calculation of bonus.
regarding % of bonus to be paid is very typical ,bonus register A&B to be prepared to check seton/set off ,which is prepared by CA and by seeing the available surplus ,percentage of bonus to be decided.
regards
j s malik
From India, Delhi
167this act is applied to all establishment where 20 or more persons are working.
all employees who has worked for 30 days in a financial year are eligible to get bonus.
an employee whose basic+DA is less than 10000 rupees are entitle to get bonus
.all bonus calculation is done on 3500 it means if your basic +DA is 3500 or more than it will be considered 3500 for calculation of bonus,if it is less than 3500 than actual will be considered for calculation of bonus.
regarding % of bonus to be paid is very typical ,bonus register A&B to be prepared to check seton/set off ,which is prepared by CA and by seeing the available surplus ,percentage of bonus to be decided.
regards
j s malik
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Bonus act amendment gazette copy.pdf
THE PAYMENT OF BONUS ACT.doc