Dear All, Kindly confirm whether bonus is calculated as 8.33% of basic or gross salary.I am confused about it.
From India, Noida
3From India, Noida
Ms.Ritika,
Kindly find below the definition of wages as per Bonus Act...
"salary or wage" means all remuneration (other than
remuneration in respect of overtime work) capable of
being expressed in terms of money, which would, if the
terms of employment, express or implied, were
fulfilled, be payable to an employee in respect of his
employment or of work done in such employment and
includes dearness allowance (that is to say, all cash
payments, by whatever name called, paid to an employee
on account of a rise in the cost of living), but does
not include--
(i) any other allowance which the employee is for
the time being entitled to;
(ii) the value of any house accommodation or of
supply of light, water, medical attendance or other
amenity or of any service or of any concessional supply
of foodgrains or other articles;
(iii) any travelling concession;
(iv) any bonus (including incentive, production
and attendance bonus);
(v) any contribution paid or payable by the
employer to any pension fund or provident fund or for
the benefit of the employee under any law for the time
being in force;
(vi) any retrenchment compensation or any gratuity
or other retirement benefit payable to the employee or
any ex gratia payment made to him;
(vii) any commission payable to the employee.
Explanation.--Where an employee is given in lieu of the
whole or part of the salary or wage payable to him,
free food allowance or free food by his employer, such
food allowance or the value of such food shall, for the
purpose of this clause, be deemed to form part of the
salary or wage of such employee;
Payment of minimum bonus.
10. Payment of minimum bonus.- Subject to the other provisions
of this Act, every employer shall be bound to pay to every employee in
respect of the accounting year commencing on any day in the year 1979
and in respect of every subsequent accounting year, a minimum bonus
which shall be 8.33 per cent. of the salary or wage earned by the
employee during the accounting year or one hundred rupees, whichever
is higher, whether or not the employer has any allocable surplus in
the accounting year:
Provided that where an employee has not completed fifteen years
of age at the beginning of the accounting year, the provisions of this
section shall have effect in relation to such employee as if for the
words "one hundred rupees", the words "sixty rupees" were substituted.
Payment of maximum bonus.
11. Payment of maximum bonus.- (1) Where in respect of any
accounting year referred to in section 10, the allocable surplus
exceeds the amount of minimum bonus payable to the employees under
that section, the employer shall, in lieu of such minimum bonus, be
bound to pay to every employee in respect of
From India, Madurai
Kindly find below the definition of wages as per Bonus Act...
"salary or wage" means all remuneration (other than
remuneration in respect of overtime work) capable of
being expressed in terms of money, which would, if the
terms of employment, express or implied, were
fulfilled, be payable to an employee in respect of his
employment or of work done in such employment and
includes dearness allowance (that is to say, all cash
payments, by whatever name called, paid to an employee
on account of a rise in the cost of living), but does
not include--
(i) any other allowance which the employee is for
the time being entitled to;
(ii) the value of any house accommodation or of
supply of light, water, medical attendance or other
amenity or of any service or of any concessional supply
of foodgrains or other articles;
(iii) any travelling concession;
(iv) any bonus (including incentive, production
and attendance bonus);
(v) any contribution paid or payable by the
employer to any pension fund or provident fund or for
the benefit of the employee under any law for the time
being in force;
(vi) any retrenchment compensation or any gratuity
or other retirement benefit payable to the employee or
any ex gratia payment made to him;
(vii) any commission payable to the employee.
Explanation.--Where an employee is given in lieu of the
whole or part of the salary or wage payable to him,
free food allowance or free food by his employer, such
food allowance or the value of such food shall, for the
purpose of this clause, be deemed to form part of the
salary or wage of such employee;
Payment of minimum bonus.
10. Payment of minimum bonus.- Subject to the other provisions
of this Act, every employer shall be bound to pay to every employee in
respect of the accounting year commencing on any day in the year 1979
and in respect of every subsequent accounting year, a minimum bonus
which shall be 8.33 per cent. of the salary or wage earned by the
employee during the accounting year or one hundred rupees, whichever
is higher, whether or not the employer has any allocable surplus in
the accounting year:
Provided that where an employee has not completed fifteen years
of age at the beginning of the accounting year, the provisions of this
section shall have effect in relation to such employee as if for the
words "one hundred rupees", the words "sixty rupees" were substituted.
Payment of maximum bonus.
11. Payment of maximum bonus.- (1) Where in respect of any
accounting year referred to in section 10, the allocable surplus
exceeds the amount of minimum bonus payable to the employees under
that section, the employer shall, in lieu of such minimum bonus, be
bound to pay to every employee in respect of
From India, Madurai
As per Bonus act
"employee" means any person (other than an apprentice)
employed on a salary or wage not exceeding 1*[three
thousand and five hundred rupees] per mensem in
any industry to do any skilled or unskilled manual,
supervisory, managerial, administrative, technical or
clerical work for hire or reward whether the terms of
employment be express or implied;
so some companies will consider Rs.3500/- as Basic wages for Bonus and they calculate it for 8.33% (Minimum Bonus) or 20% (Maximum Bonus) based on the surplus...
.however many companies are providing two months salary as bonus, they consider all salary components for Bonus calculation...
We shud ensure that the bonus should not be lesser than Rs.292/- per month for the applicable Employees.
From India, Madurai
"employee" means any person (other than an apprentice)
employed on a salary or wage not exceeding 1*[three
thousand and five hundred rupees] per mensem in
any industry to do any skilled or unskilled manual,
supervisory, managerial, administrative, technical or
clerical work for hire or reward whether the terms of
employment be express or implied;
so some companies will consider Rs.3500/- as Basic wages for Bonus and they calculate it for 8.33% (Minimum Bonus) or 20% (Maximum Bonus) based on the surplus...
.however many companies are providing two months salary as bonus, they consider all salary components for Bonus calculation...
We shud ensure that the bonus should not be lesser than Rs.292/- per month for the applicable Employees.
From India, Madurai
Dear Ritika.S.C,
You are requested to go through below given link for better understandings on Payment of Bonus Act 1965.
https://www.google.com/url?q=https:/...5KA5STc0sAehXg
.................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .....................................
From India, Mumbai
You are requested to go through below given link for better understandings on Payment of Bonus Act 1965.
https://www.google.com/url?q=https:/...5KA5STc0sAehXg
.................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. .....................................
From India, Mumbai
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.
Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf