Applicability of bonus varies from case to case basis.
As per payment of bonus act the rate of bonus is fixed as per act or as settlement arrived between the two parties. As Bonus is to be paid in next financial year based on the calculation of profitability of last/current financial year. But this case is for maximum limit of payment of bonus.
In an organisation having regular employees or Parmanent nature of job provision for maximum payment of bonus is applicable.
The appropriate authority has the power to decide and define the rate of bonus based on the performance of the company during applicable financial year. The appropriate authority weather it is central or state, has the power to settle the rate of bonus at higher rate then applicable one in bipartite aur tripartite level. In such settlement award can we given by appropriate authority e for monthly payment of bonus.
But in cases where worker is engaged in one employer or happened to be engaged in other employer next financial year all part of financial year in such cases calculation and payment of bonus is really a tough task. As per bonus act time arrived for the payment of bonus to these workers till that time they are not the worker of their previous employer. In all such cases payment of bonus on monthly basis is is judicious and practical.
From India, Patna
1As per payment of bonus act the rate of bonus is fixed as per act or as settlement arrived between the two parties. As Bonus is to be paid in next financial year based on the calculation of profitability of last/current financial year. But this case is for maximum limit of payment of bonus.
In an organisation having regular employees or Parmanent nature of job provision for maximum payment of bonus is applicable.
The appropriate authority has the power to decide and define the rate of bonus based on the performance of the company during applicable financial year. The appropriate authority weather it is central or state, has the power to settle the rate of bonus at higher rate then applicable one in bipartite aur tripartite level. In such settlement award can we given by appropriate authority e for monthly payment of bonus.
But in cases where worker is engaged in one employer or happened to be engaged in other employer next financial year all part of financial year in such cases calculation and payment of bonus is really a tough task. As per bonus act time arrived for the payment of bonus to these workers till that time they are not the worker of their previous employer. In all such cases payment of bonus on monthly basis is is judicious and practical.
From India, Patna
The above summary position shown in headline is not legal and proper. First of all, if the bonus is for the previous accounting year, its payment cannot be stretched to the 12 months of the succeeding year. As per section 19(2) payment of bonus has to be done within 8 months of close of the accounting year. So the bonus paid after November month will not be in compliance with the act and is hence improper and liable for penal proceedings. The bonus paid before finalisation of accounts for previous year is only a guess work and in case the elgibility for the bonus later turns out to be of lesser rate, there will be IR issues in making recoveries. As per Section 8 the eligibility for getting bonus would be there only if the employee has actually worked for at least 30 working days in that accounting year. So there is no eligibility to receive payment of bonus in the first month of the employment.
From India, Mumbai
From India, Mumbai
Dear Vidyanand Acharya ji,
From where you got this article or is it your own?
Our Most Appreciated Member | Super Moderator KK!HR has already expressed his view. Your entire post is wrong and baseless. I am sorry to say that this kind of posts are not expected from person like you with title to your name.
What do you mean the applicability of bonus varies from case to case basis?
Is it really the appropriate authority has the power to decide and define the rate of bonus? Who decides bonus rate in your company?
Payment of bonus on monthly basis is ridiculous and wrong practise. Please do not post wrong things and misguide.
I again say sorry for my this post. I could not resist myself.
The Moderator / Administrator can delete my this post. I have no objection to it.
From India, Mumbai
From where you got this article or is it your own?
Our Most Appreciated Member | Super Moderator KK!HR has already expressed his view. Your entire post is wrong and baseless. I am sorry to say that this kind of posts are not expected from person like you with title to your name.
What do you mean the applicability of bonus varies from case to case basis?
Is it really the appropriate authority has the power to decide and define the rate of bonus? Who decides bonus rate in your company?
Payment of bonus on monthly basis is ridiculous and wrong practise. Please do not post wrong things and misguide.
I again say sorry for my this post. I could not resist myself.
The Moderator / Administrator can delete my this post. I have no objection to it.
From India, Mumbai
I am working in a Central PSU, under payment of bonus act, for contract labourers factory/ establishment means where it is principal employer's factory or contractor establment?
please help me, if one contractor is engaging only 5 persons whether the contract labour engaged by contractor are eligible for bonus?
From India, Kakinada
please help me, if one contractor is engaging only 5 persons whether the contract labour engaged by contractor are eligible for bonus?
From India, Kakinada
Dear Chitti Talli,
If we analyse the nature and modus operandi of most of the contractors' establishments, their actual staffing pattern would comprise of two category of employees viz., regular employees of the contractor like site supervisors, clerks etc and ad hoc employees temporarily mobilised from adjacent areas to contract work sites for works that last for a specific predetermined duration. Another mode of engagement of contract labor is on regular basis. That's what the ubiquitous practice adopted in the organized manufacturing sector where the arrangement is invariably that of " Umbrella Contract ".
In this method, normally the contractor does not have any say in the selection and the number of the contract labor to be engaged. He is just unofficial conduit for record purposes and only vested with the responsibility of partial supervision of the contract labor entrusted to him for the purpose of maintaining the registers and other documents under the CLRA Act, 1970 for which he is paid some administrative charges over and above the total cost of contract labor.
Therefore, just you can conveniently hold that notwithstanding the numerical criterion for the applicability of the PB Act, 1965, bonus is conventionally restricted to the minimum of 8.33% only and not based on the profits of either the contractor or the principal employer.
From India, Salem
If we analyse the nature and modus operandi of most of the contractors' establishments, their actual staffing pattern would comprise of two category of employees viz., regular employees of the contractor like site supervisors, clerks etc and ad hoc employees temporarily mobilised from adjacent areas to contract work sites for works that last for a specific predetermined duration. Another mode of engagement of contract labor is on regular basis. That's what the ubiquitous practice adopted in the organized manufacturing sector where the arrangement is invariably that of " Umbrella Contract ".
In this method, normally the contractor does not have any say in the selection and the number of the contract labor to be engaged. He is just unofficial conduit for record purposes and only vested with the responsibility of partial supervision of the contract labor entrusted to him for the purpose of maintaining the registers and other documents under the CLRA Act, 1970 for which he is paid some administrative charges over and above the total cost of contract labor.
Therefore, just you can conveniently hold that notwithstanding the numerical criterion for the applicability of the PB Act, 1965, bonus is conventionally restricted to the minimum of 8.33% only and not based on the profits of either the contractor or the principal employer.
From India, Salem
Practice of disbursement of bonus payment on monthly basis is not even heard.
Company management is the authority to decide whether to pay minimum bonus
or maximum bonus. Practice is there is some companies to disburse bonus payment
twice in a year. For example, the company in which I am working is following this
practice.
For Hindu employees, company pay bonus at the time of their two festivals (half bonus at a time and remaining half bonus amount in other festival). Similarly for Christian Employees (Easter & X'mas) and for Muslim employees (Ramzaan & Bakrid)
From India, Aizawl
Company management is the authority to decide whether to pay minimum bonus
or maximum bonus. Practice is there is some companies to disburse bonus payment
twice in a year. For example, the company in which I am working is following this
practice.
For Hindu employees, company pay bonus at the time of their two festivals (half bonus at a time and remaining half bonus amount in other festival). Similarly for Christian Employees (Easter & X'mas) and for Muslim employees (Ramzaan & Bakrid)
From India, Aizawl
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.
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc