Dear Seniors
I have query regarding Bonus.
One employee has joined the Company on dt 27/02/2011 and he is working till date. but my Colleague (Who Handled Bonus) told us that he is not eligible for Bonus 2010-11 because he has not completed 30 working days in Financial 2010-11 even we have paid his full month Salary for the month of Mar-2011 and 2 days salary of Feb-11.
Therefore please give us the advise should he is eligible for Bonus of One Month or not?
Regards,
R.P.Dixit
From India, New Delhi
3I have query regarding Bonus.
One employee has joined the Company on dt 27/02/2011 and he is working till date. but my Colleague (Who Handled Bonus) told us that he is not eligible for Bonus 2010-11 because he has not completed 30 working days in Financial 2010-11 even we have paid his full month Salary for the month of Mar-2011 and 2 days salary of Feb-11.
Therefore please give us the advise should he is eligible for Bonus of One Month or not?
Regards,
R.P.Dixit
From India, New Delhi
If he is Staff and you process your salary based on 30 days attendance basis, yes he is eligible. Minimum bonus amount is Rs.100/- or at actuals whichever is higher. Sundararaman
From India, Madras
From India, Madras
Your past experience is nothing to do with receipt of Bonus.
To claim bonus
1. One must have worked for a minimum period of 30 days in a company during the bonus period.
2. Must have drawn wages (basic + DA) <= Rs.10,000/- p.m.
Rate of Bonus
==========
1. As per Bonus Act, it is minimum of 8.33% of his gross annual (basic + DA ) earnings
2. Ceiling on bonus is Rs.3500/- p.m. (or Rs.42,000 p.a.) currently.
2. It is discretion of management to pay more than the prescribed limit (i.e. 8.33%), or otherwise.
Therefore, whether you have 50 years experience or 30 years experience does not make difference here.
Balaji
From India, Madras
To claim bonus
1. One must have worked for a minimum period of 30 days in a company during the bonus period.
2. Must have drawn wages (basic + DA) <= Rs.10,000/- p.m.
Rate of Bonus
==========
1. As per Bonus Act, it is minimum of 8.33% of his gross annual (basic + DA ) earnings
2. Ceiling on bonus is Rs.3500/- p.m. (or Rs.42,000 p.a.) currently.
2. It is discretion of management to pay more than the prescribed limit (i.e. 8.33%), or otherwise.
Therefore, whether you have 50 years experience or 30 years experience does not make difference here.
Balaji
From India, Madras
Mr. Prakash - you will not be eligible for Bonus under the Payment of Bonus Act. But if your Managements just give you some token amount as a gesture - it is totally different.
From India, Madras
From India, Madras
Dear Friend,
Some of the company calculate the amount of bonus based on the number of days present in the organization in the financial year.
Even if the employee is getting the basic of Rs.10000 then also the bonus will ne calculated on the basic of Rs.3500/- per month
E.g
Basic Rs3500
Month 12
Amount will be 3500 X 12 Rs 42000/-
8.33% is Rs.3500 of Rs.42000/-
Calculation
If company is paying 8.33% of bonus
Rs.3500/-
Total working day of the employee in the year 250 days
3500/365*250
The amount of Bonus will be Rs.2397/-
Accordingly you can calculate the Bonus range from 8.33 % to 20 %
With regards,
Vivek
From India, Barddhaman
Some of the company calculate the amount of bonus based on the number of days present in the organization in the financial year.
Even if the employee is getting the basic of Rs.10000 then also the bonus will ne calculated on the basic of Rs.3500/- per month
E.g
Basic Rs3500
Month 12
Amount will be 3500 X 12 Rs 42000/-
8.33% is Rs.3500 of Rs.42000/-
Calculation
If company is paying 8.33% of bonus
Rs.3500/-
Total working day of the employee in the year 250 days
3500/365*250
The amount of Bonus will be Rs.2397/-
Accordingly you can calculate the Bonus range from 8.33 % to 20 %
With regards,
Vivek
From India, Barddhaman
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