Dear Mahadeva, As per payment of bonus act 1965, if any employee is getting basic wages upto Rs. 10,000/- will be covered under payment of bonus act, 1965..
From India, New Delhi
19From India, New Delhi
dear minakhshi,
The bonus act fixed the percentage of Bonus i.e.minimum 8.33 % and maximum 20% . Employer can pay any percentage between the two limit . But it should be a part of collective bergaining thropugh union or any other negotiation platform.
thanks & rgards
subhas
From India, Mumbai
The bonus act fixed the percentage of Bonus i.e.minimum 8.33 % and maximum 20% . Employer can pay any percentage between the two limit . But it should be a part of collective bergaining thropugh union or any other negotiation platform.
thanks & rgards
subhas
From India, Mumbai
Dear Friends
A company is giving 20% bonus to all the employees on Diwali festival. But to the resigned employees, it is giving 8.33% (i.e.statutory only). Is it correct
And
One employee has completed 2.6 yrs of his service, latter he resigned. For the 1st year, he received 20% of bonus in the 2nd year.
If he works up to Diwali festival he will get 20% bonus for the 2nd year also. but he resigned before the festival.
Now the management want to give 8.33% only for total 1.6 years. Is it right way
Please clarify my query.
Thanks & Regars
KAR
From India, Hyderabad
A company is giving 20% bonus to all the employees on Diwali festival. But to the resigned employees, it is giving 8.33% (i.e.statutory only). Is it correct
And
One employee has completed 2.6 yrs of his service, latter he resigned. For the 1st year, he received 20% of bonus in the 2nd year.
If he works up to Diwali festival he will get 20% bonus for the 2nd year also. but he resigned before the festival.
Now the management want to give 8.33% only for total 1.6 years. Is it right way
Please clarify my query.
Thanks & Regars
KAR
From India, Hyderabad
Dear Meenakshi,
As per bonus Act it is correct that, minimum bonus is 8.33 % & max.bonus is 20% but the % of bonus is depends on profitibility of the company, which cam from Bonus register A & B, which generally Finance people maintain. First allocate the bonus amount from register A & B then calculate the %age of bonus. If company is in loss then 8.33% must, but incase compoany is in profit then need to calculate the % amount wnich basically derived from register A & B.
Regards
Arun
From India, Delhi
As per bonus Act it is correct that, minimum bonus is 8.33 % & max.bonus is 20% but the % of bonus is depends on profitibility of the company, which cam from Bonus register A & B, which generally Finance people maintain. First allocate the bonus amount from register A & B then calculate the %age of bonus. If company is in loss then 8.33% must, but incase compoany is in profit then need to calculate the % amount wnich basically derived from register A & B.
Regards
Arun
From India, Delhi
Dear Sir,
Thanks for reply....
further to this i wanted to ask,we can pay the bonus b/w 8.33% to 20% as per companys profitability,but how exactly percentage of bonus is corelated to profitability i.e. at which amount of company profit we can decide the 15% bonus.
Regards
Minakshi
From India, Delhi
Thanks for reply....
further to this i wanted to ask,we can pay the bonus b/w 8.33% to 20% as per companys profitability,but how exactly percentage of bonus is corelated to profitability i.e. at which amount of company profit we can decide the 15% bonus.
Regards
Minakshi
From India, Delhi
hi minakshi...
let me clear about bonus....
condition:-
1. the bonus will be considered upon basic+da
2. if an employee withdrawing basic+da more than 10k then he can not claim for bonus
3. if an employee passed at least 30 days in assessment year then he gets the eligibility of bonus.
4. the minimum percentage of bonus is 8.33.
5. the maximum percentage of bonus is 20.
6. the bonus is not compulsory upto first 5 years when company is in loss but for this purpose the company's account dept. has to maintain Form A and Form B registered in they mention the reason of loss.
7. but after 5 years whether company suffer loss or profit. the company will liable to pay bonus as per prescribed percentage.
8. for distribution of bonus the Company Maintain Form C Registered.
9. for annual return of bonus Form D.
10. The minimum bonus is 3500.
11. The Maximum Bonus is 8400
12. If company want to give more than 8400 then it will be termed as exgratia.
13. here i am mentioning the formulas or calculation of bonus...
suppose ur basic 6000. and your company gives 8.33 % of bonus. and u present full day in every month...in that case you earn 6000*12=72000 basic in a earn . and according to you 72000*8.33%= 5998.
but company giving you 3500 as 8.33%....so i think you will be little bit confuse.....
Because the reason is that.the standard bonus basic 3500 we consider as per act...as i mention above ur basic salary is 6000 but ur bonus basic will be 3500..and u full day present in every month....
so the calculation3500*12=42000.
42000*8.33%=3500.
42000*20%=8400
however it is totally company discretion that whether company giving you bonus on ur actual basic salary...
i think , minakshi you will be cleared through this concise concept of bonus...
Thanks
Regards
Vikas Khatter.
From India, Chandigarh
let me clear about bonus....
condition:-
1. the bonus will be considered upon basic+da
2. if an employee withdrawing basic+da more than 10k then he can not claim for bonus
3. if an employee passed at least 30 days in assessment year then he gets the eligibility of bonus.
4. the minimum percentage of bonus is 8.33.
5. the maximum percentage of bonus is 20.
6. the bonus is not compulsory upto first 5 years when company is in loss but for this purpose the company's account dept. has to maintain Form A and Form B registered in they mention the reason of loss.
7. but after 5 years whether company suffer loss or profit. the company will liable to pay bonus as per prescribed percentage.
8. for distribution of bonus the Company Maintain Form C Registered.
9. for annual return of bonus Form D.
10. The minimum bonus is 3500.
11. The Maximum Bonus is 8400
12. If company want to give more than 8400 then it will be termed as exgratia.
13. here i am mentioning the formulas or calculation of bonus...
suppose ur basic 6000. and your company gives 8.33 % of bonus. and u present full day in every month...in that case you earn 6000*12=72000 basic in a earn . and according to you 72000*8.33%= 5998.
but company giving you 3500 as 8.33%....so i think you will be little bit confuse.....
Because the reason is that.the standard bonus basic 3500 we consider as per act...as i mention above ur basic salary is 6000 but ur bonus basic will be 3500..and u full day present in every month....
so the calculation3500*12=42000.
42000*8.33%=3500.
42000*20%=8400
however it is totally company discretion that whether company giving you bonus on ur actual basic salary...
i think , minakshi you will be cleared through this concise concept of bonus...
Thanks
Regards
Vikas Khatter.
From India, Chandigarh
Thanks for reply Vikas...
would u please see my query once again,its quite different what u told.
My question is ..how bonus percentage either 8.33%,15% Or 20% corelated to company profit.
Regards
Minakshi
From India, Delhi
would u please see my query once again,its quite different what u told.
My question is ..how bonus percentage either 8.33%,15% Or 20% corelated to company profit.
Regards
Minakshi
From India, Delhi
Dear Minakshi,
Reply to your query is given in Section 11 of Payment of Bonus Act which reads as under:
“Payment of maximum bonus.
11. (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 that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent of such salary or wage.
(2) In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section 15 shall be taken into account in accordance with the provisions of that section.”
Hence you have to calculate allocable surplus of your unit and work out bonus payable accordingly.
From India, Hyderabad
Reply to your query is given in Section 11 of Payment of Bonus Act which reads as under:
“Payment of maximum bonus.
11. (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 that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent of such salary or wage.
(2) In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section 15 shall be taken into account in accordance with the provisions of that section.”
Hence you have to calculate allocable surplus of your unit and work out bonus payable accordingly.
From India, Hyderabad
Dear Minakshi,
As per provision of act the % of bonus is totally employer discretion ( 8.33%-- 20%).
Bonus is statutory obligation and Ex-gratia is optional. I think the opinion of Mr. Suresh is not right.
It is rightly said by Ms Manasi is that there is provision of set on & set off to tackle the loss situation.
As per provision of bonus act if you are getting less than or Rs-10,000 (Basic) as a salary and if you had worked 30 days in a account year you will be entitled for bonus and bonus will be calculated on less then or Rs-3500/- PM (sec 12) @ rate of minimum 8.33% (sec.10)and maximum 20%(sec.11).the % depends on the allocable surplus of the company but one employer will have to pay 8.33% as a mandatory even if he is not earning profit. There is also a provision that for a new company the act have given a relaxation of 5 years but if during the year the company is earning profit then the company will have to pay bonus for the particular year (sec.16).
With Regards
Sandip Saha
From India, Kolkata
As per provision of act the % of bonus is totally employer discretion ( 8.33%-- 20%).
Bonus is statutory obligation and Ex-gratia is optional. I think the opinion of Mr. Suresh is not right.
It is rightly said by Ms Manasi is that there is provision of set on & set off to tackle the loss situation.
As per provision of bonus act if you are getting less than or Rs-10,000 (Basic) as a salary and if you had worked 30 days in a account year you will be entitled for bonus and bonus will be calculated on less then or Rs-3500/- PM (sec 12) @ rate of minimum 8.33% (sec.10)and maximum 20%(sec.11).the % depends on the allocable surplus of the company but one employer will have to pay 8.33% as a mandatory even if he is not earning profit. There is also a provision that for a new company the act have given a relaxation of 5 years but if during the year the company is earning profit then the company will have to pay bonus for the particular year (sec.16).
With Regards
Sandip Saha
From India, Kolkata
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