Subject: Bonus Act query for Shops and establishment
Respected Sir/s,
Need your expert advice on the query related to the Bonus act.
We are 60 employees and registered under Shops and Establishment Act, Karnataka. There are 5 employees who come under the Bonus Act i.e. earning less than 21,000/-. For other employees we follow the Gross concept - wherein incentives or variables are not given.
Query 1: How is the allocable surplus to be considered? Is the entire amount only for 5 employees or they should get only a proportion based on the annual ctc of the employees.
Query 2: Re: New labour codes - are they implemented for Karnataka?
Thank you in advance.
From India, Delhi
Respected Sir/s,
Need your expert advice on the query related to the Bonus act.
We are 60 employees and registered under Shops and Establishment Act, Karnataka. There are 5 employees who come under the Bonus Act i.e. earning less than 21,000/-. For other employees we follow the Gross concept - wherein incentives or variables are not given.
Query 1: How is the allocable surplus to be considered? Is the entire amount only for 5 employees or they should get only a proportion based on the annual ctc of the employees.
Query 2: Re: New labour codes - are they implemented for Karnataka?
Thank you in advance.
From India, Delhi
Answering the queries on the basis of Payment of Bonus Act 1965, the legal position is as follows:
1. The available surplus gets divided between the eligible 5 employees subject to the ceiling of 20% to each employee. Any left over amount gets carried over to the succeeding year subject to a limit of 3 years. Thereafter the employer is at liberty to stop crediting it for bonus purpose.
2. The New Labour Code is yet to be implemented anywhere in India
From India, Mumbai
15341. The available surplus gets divided between the eligible 5 employees subject to the ceiling of 20% to each employee. Any left over amount gets carried over to the succeeding year subject to a limit of 3 years. Thereafter the employer is at liberty to stop crediting it for bonus purpose.
2. The New Labour Code is yet to be implemented anywhere in India
From India, Mumbai
Employees covered under Bonus Act should be based on Basic and DA not on monthly gross. Moreover, Bonus is a deferred wages which means the Bonus for previous accounting year will be paid following next accounting year within 8 months of completion of the accounting year. Therefore, those who have last year basic & DA less than or equal to 21,000/- will be eligible for bonus.
What Mr. KK!HR has been mentioned almost right except the available surplus will be allocable surplus ( certain % of available surplus ) and the left over amount will carry forward subject to maximum 20% of payable bonus not the entire left over amount.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
What Mr. KK!HR has been mentioned almost right except the available surplus will be allocable surplus ( certain % of available surplus ) and the left over amount will carry forward subject to maximum 20% of payable bonus not the entire left over amount.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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Bonus act amendment gazette copy.pdf
THE PAYMENT OF BONUS ACT.doc