Dear Seniors,
One of our colleague has faced one problem he got bonus from his company the amount would be very low due to he has taken Earned leave. the question is is there any provision to reduce bonus amount from total calculation days. that company hr said it will not considered for the EL and National festival holidays for 11 days payment, so they have deducted his bonus amount against his taken EL and National holidays, if any provision is there pls share with proof please..... as of my knowledge no provision to reduce the bonus amount.
Regards,
Shivananda VD
From India, Bangalore
8One of our colleague has faced one problem he got bonus from his company the amount would be very low due to he has taken Earned leave. the question is is there any provision to reduce bonus amount from total calculation days. that company hr said it will not considered for the EL and National festival holidays for 11 days payment, so they have deducted his bonus amount against his taken EL and National holidays, if any provision is there pls share with proof please..... as of my knowledge no provision to reduce the bonus amount.
Regards,
Shivananda VD
From India, Bangalore
Earned Leave is equivalent to worked days same way National Holidays are Paid Holidays, so Bonus cannot be reduced it has to be calculated as working days as per my best knowledge, but wait for other seniors to advice
From India, Ahmadabad
From India, Ahmadabad
Hi,
As per the Payment of Bonus Act, the amount of bonus payable ranges from 8.33% to 20% of the emoluments to be calculated based on the reckoned wage of Rs.3500, irrespective of the emoluments exceeding Rs,3,500 per month, i.e. 8.33% to 20% of the total emoluments per annum. Hence, I don't think, there will be any issue of 11 days EL, keeping in view the very high salaries. Secondly, National Holidays and paid EL are not considered as absence and hence the question of deduction thereof does not arise at all.
However, if the employer deducts for such authorised EL and National Holidays, you may approach the authorities under the Payment of Bonus Act with your grievance and they will help you to recover the money.
Regards
From India, Mumbai
As per the Payment of Bonus Act, the amount of bonus payable ranges from 8.33% to 20% of the emoluments to be calculated based on the reckoned wage of Rs.3500, irrespective of the emoluments exceeding Rs,3,500 per month, i.e. 8.33% to 20% of the total emoluments per annum. Hence, I don't think, there will be any issue of 11 days EL, keeping in view the very high salaries. Secondly, National Holidays and paid EL are not considered as absence and hence the question of deduction thereof does not arise at all.
However, if the employer deducts for such authorised EL and National Holidays, you may approach the authorities under the Payment of Bonus Act with your grievance and they will help you to recover the money.
Regards
From India, Mumbai
Dear Shivananda
Bonus is based on productivity contributed by members of the organisation. Contribution is again based on the number of days you have worked for the productivity. How can any one
expect who has not made any contribution for the productivity during those days which he/she was on leave and absent. You judge yourself.
regrds
Sreedharan PV
From India, Bangalore
Bonus is based on productivity contributed by members of the organisation. Contribution is again based on the number of days you have worked for the productivity. How can any one
expect who has not made any contribution for the productivity during those days which he/she was on leave and absent. You judge yourself.
regrds
Sreedharan PV
From India, Bangalore
Dear Seniors,
From all your discussions and other Posting on BONUS Act. I would like to lay down the few points so that you all can rectify if their is any error in my Understandings.
1 ) From the Bonus Act, the eligibilty of bonus is whoever earning below salary Rs 10000/-
Here the Term "salary below Rs 10000/-" refers to an employee's monthly BASIC salary ( or incase plus Dearness Allowance wherever exist) which is similarly accounted in case of EPF. And Excluding other allowances like OT , HRA ,Travelling Concessions, Food Allowance , Washing Allowance , Conveyance Allowance , ESI & EPF contributions, retrenchment compensation, incentives, gratuity etc)
Concluding remarks = Bonus is calculated on Basic and DA. ie whomsoever getting gross salary above Rs10000/- is eligible for BONUS if there Basic Head is below Rs1000/-
2) For calcuation purpose, Rs.3500 per month maximum will be considered for the bonus calculation,if an employee BASIC +DA is below or equal to Rs 10,000/- per month and bonus has to be paid @ 8.33 % of the salary.
Concluding remarks = Rs 3500 is the Bonus AMOUNT for all Employee annually enjoying SALARY (BASIC + DA) is less than or equal to 10000/-
4) Can the practise of paying bonus on monthly basis is allowed ? , some pay minimum 8.33% of Rs 3500 i.e Rs 292/-
3) I heard Hospitals, Social welfare institutions, Chambers of the Commerce , Indian Red Cross society or other institutions of a like nature, universities and educational institutions are exempted from payment of Bonus..
As I am working in a medical setup. Are Clinics and HOSPITALS like ( Apollo, Fortis etc) and Medical Diagnostics setup like (SRL Diagnostics,Roche Diagnostics) exempted from payment of Bonus ? I like to be very specific.. If their is any NOTICE / CIRCULAR .. Please let me know.
Thanking you,
Chaplin
From India, Bangalore
From all your discussions and other Posting on BONUS Act. I would like to lay down the few points so that you all can rectify if their is any error in my Understandings.
1 ) From the Bonus Act, the eligibilty of bonus is whoever earning below salary Rs 10000/-
Here the Term "salary below Rs 10000/-" refers to an employee's monthly BASIC salary ( or incase plus Dearness Allowance wherever exist) which is similarly accounted in case of EPF. And Excluding other allowances like OT , HRA ,Travelling Concessions, Food Allowance , Washing Allowance , Conveyance Allowance , ESI & EPF contributions, retrenchment compensation, incentives, gratuity etc)
Concluding remarks = Bonus is calculated on Basic and DA. ie whomsoever getting gross salary above Rs10000/- is eligible for BONUS if there Basic Head is below Rs1000/-
2) For calcuation purpose, Rs.3500 per month maximum will be considered for the bonus calculation,if an employee BASIC +DA is below or equal to Rs 10,000/- per month and bonus has to be paid @ 8.33 % of the salary.
Concluding remarks = Rs 3500 is the Bonus AMOUNT for all Employee annually enjoying SALARY (BASIC + DA) is less than or equal to 10000/-
4) Can the practise of paying bonus on monthly basis is allowed ? , some pay minimum 8.33% of Rs 3500 i.e Rs 292/-
3) I heard Hospitals, Social welfare institutions, Chambers of the Commerce , Indian Red Cross society or other institutions of a like nature, universities and educational institutions are exempted from payment of Bonus..
As I am working in a medical setup. Are Clinics and HOSPITALS like ( Apollo, Fortis etc) and Medical Diagnostics setup like (SRL Diagnostics,Roche Diagnostics) exempted from payment of Bonus ? I like to be very specific.. If their is any NOTICE / CIRCULAR .. Please let me know.
Thanking you,
Chaplin
From India, Bangalore
Dear Mr. Chaplin, Never conclude from the discussions. Read the relevant Act, understand and seek specific clarifications, if any. Don’t leave reading to others. Best of luck.
From India, Mumbai
From India, Mumbai
Dear Shivananda
With regards to Pvt Co's, the bonus is calculated based on productivity, profit & appraisal(name in good book of you boss).
productivity is the achievement, calculated based on fixed early target.
a certain % is allocated to bonus according to the profit & companies profit sharing policy
even if your non achiever, you may enjoy bonus, if your in Boss's good book.
however NH & EL are compulsorily to be considered as working days & full wages to be paid as per Sec.3 of Industrial Establishments (Nationa & Festival Holidays) Act 1958
From India, Chennai
With regards to Pvt Co's, the bonus is calculated based on productivity, profit & appraisal(name in good book of you boss).
productivity is the achievement, calculated based on fixed early target.
a certain % is allocated to bonus according to the profit & companies profit sharing policy
even if your non achiever, you may enjoy bonus, if your in Boss's good book.
however NH & EL are compulsorily to be considered as working days & full wages to be paid as per Sec.3 of Industrial Establishments (Nationa & Festival Holidays) Act 1958
From India, Chennai
Every employee receiving salary or wages upto RS. 10,000 p.m. and engaged in any kind of work
whether skilled, unskilled, managerial, supervisory etc. is entitled to bonus for every accounting
year ,if he has worked for at least 30 working days in that year.
An employer has the right to make permissible deductions from the bonus payable to an employee, such as,
festival/interim bonus paid and financial loss caused by misconduct of the employee.
I hope this clarifies the issue.
From India, Bokaro
whether skilled, unskilled, managerial, supervisory etc. is entitled to bonus for every accounting
year ,if he has worked for at least 30 working days in that year.
An employer has the right to make permissible deductions from the bonus payable to an employee, such as,
festival/interim bonus paid and financial loss caused by misconduct of the employee.
I hope this clarifies the issue.
From India, Bokaro
Dear Mr Chaplin, as my knowledge and experiance no company can deduct EL & NL from ur bonus amount. In any case if ur salary (Basic + DA) is less than 10,000/- , you are eligible for min 8.33% of the salary taken during the respective period. This is about the days u have spent for the productivity of the organisation.
Thanks
From India, Patiala
Thanks
From India, Patiala
Dear Mr.Shivanand,
After reading your query, the point here to be addressed is,
* Whether earned leave availed by an employee should not be considered for arriving at total number of days worked for the purpsoes of computing the statutory bonus payment ?
Answer is given in section 14 of the Payment of Bonus Act, 1965 for the purposes of Section 13 of the said Act which lays down the follwing provisons.
Section 13: Proportionate reduction in bonus in certain cases - for those days on which an employee wouldn't have worked - bounus can be paid on pro-rata basis.
Section 14: Computation of number of working days - An employee shall be deemed to have wokred in an establishment in any accounting year also on the days on which he as been;
A. Laid off
B. Leave with salary or wage;
C. Absent due to temporary disablement caused by accident arising out of and in the course of his employment; and
D. Maternity leave with salary or wage.
Assuming the establishment which you are referring is not a seasonal one, the anwers is, Earned Leave avialed shall also be taken into account for computation of Bonus actually payable.
The reason given by the fellow HR professional to you needs a re-thinking.
Hope, i have addressed your query with crystal clarity.
Regards,
Sharath Mahendra Kumar
From India, Bangalore
After reading your query, the point here to be addressed is,
* Whether earned leave availed by an employee should not be considered for arriving at total number of days worked for the purpsoes of computing the statutory bonus payment ?
Answer is given in section 14 of the Payment of Bonus Act, 1965 for the purposes of Section 13 of the said Act which lays down the follwing provisons.
Section 13: Proportionate reduction in bonus in certain cases - for those days on which an employee wouldn't have worked - bounus can be paid on pro-rata basis.
Section 14: Computation of number of working days - An employee shall be deemed to have wokred in an establishment in any accounting year also on the days on which he as been;
A. Laid off
B. Leave with salary or wage;
C. Absent due to temporary disablement caused by accident arising out of and in the course of his employment; and
D. Maternity leave with salary or wage.
Assuming the establishment which you are referring is not a seasonal one, the anwers is, Earned Leave avialed shall also be taken into account for computation of Bonus actually payable.
The reason given by the fellow HR professional to you needs a re-thinking.
Hope, i have addressed your query with crystal clarity.
Regards,
Sharath Mahendra Kumar
From India, Bangalore
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BONUS CALCULATION BY WORKING DAYS.xls
BONUS CALCULATION RULE (1).pdf