Is it true that the employee who is earning more than Rs. 7000/- is not eligible for getting the Bonus?
In other words, the company is not bound to pay bonus to the employees whose salary is more than Rs. 7000/-. Is it true?
In our company we do not get bonus as all are earning the salary over Rs. 7000/- Previously this amount was Rs. 3500/-.
In other words, the company is not bound to pay bonus to the employees whose salary is more than Rs. 7000/-. Is it true?
In our company we do not get bonus as all are earning the salary over Rs. 7000/- Previously this amount was Rs. 3500/-.
As per the payment of Bonus Act, employees whose wages does not exceed Rs.21000/- per month are eligible for bonus and where the wage of such an employee exceeds Rs.7000/- per month, the bonus payable to him may be calculated as if the wage is Rs.7000/- per month.
MOHAN KUMAR
From India, Bangalore
6MOHAN KUMAR
From India, Bangalore
Thank you so much for the reply. I think I have understood what you are saying.
Just to reiterate - Employees having the salary of Rs. 21000 or lesser will at least get Rs. 7000 as a bonus if not 8.33%. Please confirm.
What steps should we take to pay the bonus now? We have not paid the bonus in last 15 years right from the inception of the firm.
Do we need to pay the arrears of bonus for so many year? Also what will happen to the employees who have left the firm?
Please guide me.
Thanks in Advance.
Just to reiterate - Employees having the salary of Rs. 21000 or lesser will at least get Rs. 7000 as a bonus if not 8.33%. Please confirm.
What steps should we take to pay the bonus now? We have not paid the bonus in last 15 years right from the inception of the firm.
Do we need to pay the arrears of bonus for so many year? Also what will happen to the employees who have left the firm?
Please guide me.
Thanks in Advance.
Employees getting Basic+DA less or equal to Rs. 21000/- are eligible for bonus, if Basic+DA is less than or equal to Rs. 7000/- Bonus will be not less than 7000/- while if basic+DA is more than 7000/- Than bonus will be Rs. 7000/- or minimum wages which ever is more.
From India, Pune
From India, Pune
Dear Professional Colleagues,
What happens to employees drawing Bonus wage/salary >7,000/- but up to 21,000/- . According to my understanding Bonus is payable on actual wages drawn on pro-rata basis. and only for the purpose of coverage under Bonus Act, ceiling limit fixed is Rs.21,000/-.
Is it upper wage limit for calculation of bonus limited to Rs.7,000/- i.e., if some body is drawing basic + VDA of Rs.10,000/- their salary for the purpose of calculation should it be considered as Rs.7,000/- only ??
If Some one clarify on this point, it will be great help to every one like me.
From India, Bangalore
What happens to employees drawing Bonus wage/salary >7,000/- but up to 21,000/- . According to my understanding Bonus is payable on actual wages drawn on pro-rata basis. and only for the purpose of coverage under Bonus Act, ceiling limit fixed is Rs.21,000/-.
Is it upper wage limit for calculation of bonus limited to Rs.7,000/- i.e., if some body is drawing basic + VDA of Rs.10,000/- their salary for the purpose of calculation should it be considered as Rs.7,000/- only ??
If Some one clarify on this point, it will be great help to every one like me.
From India, Bangalore
1. If wages >7000 but less than 21000 then minimum bonus paid on the minimum wages notified for respective industries in scheduled employment.
2. Now the clause of 3500/7000 has been removed rather it is actual wages or minimum wages whichever is higher is substituted.
From India, Pune
2. Now the clause of 3500/7000 has been removed rather it is actual wages or minimum wages whichever is higher is substituted.
From India, Pune
I feel that employees whose Basic + VDA is upto or less than 21,000/- but more than 7000/-, then Actual Basic + VDA has to be taken as the basis for Bonus calculation for the FY 2016-17 and in proportion to no. of days salary/wages actually earned in each month during the period April 2016 to March 2017. I hope this is clear. Can any one confirm this
From India, Bangalore
From India, Bangalore
Sharing views expressed by Mr. K K Mishra, Employees getting Basic+DA less or equal to Rs. 21000/- are eligible for bonus, if Basic+DA is less than or equal to Rs. 7000/- Bonus will be not less than 7000/-. But if basic+DA is more than 7000/- then bonus calculation should be done on the Basic Wages/Salary + VDA actually fixed and this can be taken up to actual basic wages./salary + VDA up to Rs.21,000/- . I strongly feel that this is the spirit of Payment of Bonus Amendment Act, 2015
From India, Bangalore
From India, Bangalore
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