Dear friends,
Please help me out in understanding the concept of bonus, its eligibility criteria with a simple illustration.
For example, a person with a gross salary of Rs15000 who has joined an established organisation on 1.03.2008 is entitled to get how much bonus?
Your help awaited,
Thanks
Sarmistha
From India, New Delhi
1Please help me out in understanding the concept of bonus, its eligibility criteria with a simple illustration.
For example, a person with a gross salary of Rs15000 who has joined an established organisation on 1.03.2008 is entitled to get how much bonus?
Your help awaited,
Thanks
Sarmistha
From India, New Delhi
Dear Sarmistha
As per the payment of bonus act 1965
1.if an employee gets less than 10 k as basic than he is entitle to get bonus
2.employee should work atleast 30 days in a financial year to become entitle for bonus.
3.bonus calculation is done by presuming basic 3500 per month,so all employees whose basic is between 3500 to 10000
will get same bonus
4.minimum bonus is 8.33% and max 20% of basic earned in a year.
From India, Delhi
As per the payment of bonus act 1965
1.if an employee gets less than 10 k as basic than he is entitle to get bonus
2.employee should work atleast 30 days in a financial year to become entitle for bonus.
3.bonus calculation is done by presuming basic 3500 per month,so all employees whose basic is between 3500 to 10000
will get same bonus
4.minimum bonus is 8.33% and max 20% of basic earned in a year.
From India, Delhi
Dear Sir, He is not entitled for Bonus, because he is out of the purview of the Act. Persons drawing Rs.10000/-P.M. only are eligible for Bonus as per Bonus Act. D.Gurumurthy HR/IR Consultant
From India, Hyderabad
From India, Hyderabad
Mrs.Sarmistha Choudhury,
In your case ,kindly look into the wage definition of Bonus Act:if employee BASIC + D.A less than 10,000/- then he/she is eligible for Bonus ,even gross salary more than 10,000/- and for calculation purpose restricted to 3500/- considering the Earn wages of individual months.
Thanks
Naresh
From India, Hyderabad
In your case ,kindly look into the wage definition of Bonus Act:if employee BASIC + D.A less than 10,000/- then he/she is eligible for Bonus ,even gross salary more than 10,000/- and for calculation purpose restricted to 3500/- considering the Earn wages of individual months.
Thanks
Naresh
From India, Hyderabad
Rule 1
The organisation should have completed 5 years or it should have made profit whichever is earlier.
Rule 2
All employees who have earned wages for a minimum of 30 days in an accounting year are eligible for Bonus
Rule 3
All employees drawing Basic plus DA not more than Rs 10000 per month are eligible for Bonus
Rule 4
If an employee draws Bsic plus DA of Rs 10000 or less for paet of the period, then he or she is eligible for Bonus for those months
Rule 5
Percentage of Bonus is depenadant on allocable surplus Please consult your auditor to find out as to what is the allocable surplus in your organisation
Rule 6
If the percentage works out to be less than 8.33 then organisation need to pay 8.33 as Minimum bonus and the principle of setoff and set on will be applied
Rule 7
It is calculaated on actual basic plus da or 3500/ whicever is low. That means, employees drawing wages more than 3500 but upto Rs 10000 will get the same Bonus
There are a few more finer points in the Payment of Bonus Act
Minimum was 4 % in 1965 then revised to 8.33 and then brought down to 4% in 1972 and then again revised to 8.33%
Salary limit was Rs 750, then raised to Rs 1600 then to Rs 2500 and now to Rs 3500
Sivasankaran
From India, Chennai
The organisation should have completed 5 years or it should have made profit whichever is earlier.
Rule 2
All employees who have earned wages for a minimum of 30 days in an accounting year are eligible for Bonus
Rule 3
All employees drawing Basic plus DA not more than Rs 10000 per month are eligible for Bonus
Rule 4
If an employee draws Bsic plus DA of Rs 10000 or less for paet of the period, then he or she is eligible for Bonus for those months
Rule 5
Percentage of Bonus is depenadant on allocable surplus Please consult your auditor to find out as to what is the allocable surplus in your organisation
Rule 6
If the percentage works out to be less than 8.33 then organisation need to pay 8.33 as Minimum bonus and the principle of setoff and set on will be applied
Rule 7
It is calculaated on actual basic plus da or 3500/ whicever is low. That means, employees drawing wages more than 3500 but upto Rs 10000 will get the same Bonus
There are a few more finer points in the Payment of Bonus Act
Minimum was 4 % in 1965 then revised to 8.33 and then brought down to 4% in 1972 and then again revised to 8.33%
Salary limit was Rs 750, then raised to Rs 1600 then to Rs 2500 and now to Rs 3500
Sivasankaran
From India, Chennai
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf