Dear PK Jain ji,
Nice to hear you after a break. Always pleasure in interacting with you.
I Think, you have answered the queries of Mamta ji in hurry.
In my view, following are the answers to the queries.
If employee is entitled for Bonus under the Act, he can claim bonus even the company is in loss and not exempted from bonus, irrespective of there is a clause of Bonus in the appointment letter or not.
If employee is not entitled for Bonus under the Act but entitled as per the terms of appointment letter with out any condition thereto as regards to profitability and company is in loss, the employee can demand / claim the Bonus and if it is not paid by the employer, it is breach of contract which can be dealt with according to law.
It is not unfair on the part of company. It is a statutory liability upon company to pay Bonus to those 70% . Rest 30%, there is no statutory liability upon company.
Even in 30% the company can have disparity if certain employees opt for Bonus in CTC.
From India, Mumbai
2556Nice to hear you after a break. Always pleasure in interacting with you.
I Think, you have answered the queries of Mamta ji in hurry.
In my view, following are the answers to the queries.
If employee is entitled for Bonus under the Act, he can claim bonus even the company is in loss and not exempted from bonus, irrespective of there is a clause of Bonus in the appointment letter or not.
If employee is not entitled for Bonus under the Act but entitled as per the terms of appointment letter with out any condition thereto as regards to profitability and company is in loss, the employee can demand / claim the Bonus and if it is not paid by the employer, it is breach of contract which can be dealt with according to law.
It is not unfair on the part of company. It is a statutory liability upon company to pay Bonus to those 70% . Rest 30%, there is no statutory liability upon company.
Even in 30% the company can have disparity if certain employees opt for Bonus in CTC.
From India, Mumbai
Dear Sharmila ji,
If a company is paying Bonus at the rate of Rs.8.33% every year to all the employees irrespective of the cadre i.e more than Rs.10,000/- . After some time the company is merged with another company due to some problems. The new company is stopped the Bonus for those who cross Rs. 10,000/- (limit) . In this is it justifible.
Regards,
PBS KUMAR
UOTE=Sharmila Das;2041905]Dear Ms. Mamta Agarwal,
Bonus is not a part of CTC. However, many companies have their CTC breakup included with Bonus [The Bonus if paid with monthly salary and can be adjusted at the end of the accounting year, it should be suitably maintained with the records accordingly with forms A, B, C & D.]
However, according to The Bonus Act 1965, Bonus is payable annually within 8 months from close of accounting year to all employees whose salary or wages do not exceed Rs 10000 per month provided they have worked for at least 30 days in the accounting year -- which means Bonus is paid for the previous year. In my view the Bonus should be paid in which the available surplus,& the allocable surplus and therefore the percentage of bonus can be determined.
If your company had decided to include bonus as a part of the CTC for salary fixation, they can include the prescribed profit which has to be declared for previous financial year even if the company is running in losses, it has to pay minimum bonus (8.33%) to employees and it can be adjusted in add - on / add - off for next year's profit.
Read The Bonus Act U/s 17. Adjustment of customary or interim bonus against bonus payable under the Act.—Whether in any accounting year –
(b) an employer has paid a part of the bonus payable under this Act to an employee before the date on which such bonus becomes payable.
The Bonus can be paid with monthly salary and can be adjusted at the end of the accounting year and the requirement of maintaining registers and returns in form A, B, C & D can be maintained accordingly.[/QUOTE]
From India, Kakinada
If a company is paying Bonus at the rate of Rs.8.33% every year to all the employees irrespective of the cadre i.e more than Rs.10,000/- . After some time the company is merged with another company due to some problems. The new company is stopped the Bonus for those who cross Rs. 10,000/- (limit) . In this is it justifible.
Regards,
PBS KUMAR
UOTE=Sharmila Das;2041905]Dear Ms. Mamta Agarwal,
Bonus is not a part of CTC. However, many companies have their CTC breakup included with Bonus [The Bonus if paid with monthly salary and can be adjusted at the end of the accounting year, it should be suitably maintained with the records accordingly with forms A, B, C & D.]
However, according to The Bonus Act 1965, Bonus is payable annually within 8 months from close of accounting year to all employees whose salary or wages do not exceed Rs 10000 per month provided they have worked for at least 30 days in the accounting year -- which means Bonus is paid for the previous year. In my view the Bonus should be paid in which the available surplus,& the allocable surplus and therefore the percentage of bonus can be determined.
If your company had decided to include bonus as a part of the CTC for salary fixation, they can include the prescribed profit which has to be declared for previous financial year even if the company is running in losses, it has to pay minimum bonus (8.33%) to employees and it can be adjusted in add - on / add - off for next year's profit.
Read The Bonus Act U/s 17. Adjustment of customary or interim bonus against bonus payable under the Act.—Whether in any accounting year –
(b) an employer has paid a part of the bonus payable under this Act to an employee before the date on which such bonus becomes payable.
The Bonus can be paid with monthly salary and can be adjusted at the end of the accounting year and the requirement of maintaining registers and returns in form A, B, C & D can be maintained accordingly.[/QUOTE]
From India, Kakinada
Dear Ms. Mamta Agarwal, Its the company’s decision to pay the bonus to the employees who are not covered under payment of bonus act. regards, ambashankar
From India, Chennai
From India, Chennai
Hi.........
I am calculating first time bonus for all around 250 employees, before this company is paying on gross sal but now they want to pay as per law.....
If employee having salary 10,000 with basic 6000 in every month
bonus= (10000*12) * 8.33%= 9996 or 3,500 or (6000*12)*8.33%= 5998
if employee having salary 12,000 with basic 7200 in every month
bonus= (12000*12) * 8.33%= 11995 or 3,500 or (7200*12)*8.33%= 7197
what will be bonus amount considering no absentism.... As my confusion is whether it is calculated on 3,500 or 6000or 7200 or 10,000 or 12000
From India, Mumbai
I am calculating first time bonus for all around 250 employees, before this company is paying on gross sal but now they want to pay as per law.....
If employee having salary 10,000 with basic 6000 in every month
bonus= (10000*12) * 8.33%= 9996 or 3,500 or (6000*12)*8.33%= 5998
if employee having salary 12,000 with basic 7200 in every month
bonus= (12000*12) * 8.33%= 11995 or 3,500 or (7200*12)*8.33%= 7197
what will be bonus amount considering no absentism.... As my confusion is whether it is calculated on 3,500 or 6000or 7200 or 10,000 or 12000
From India, Mumbai
I could not get why there is a confusion, if an employee has been hired and Bonus is included as a part of CTC then the employer is bound to pay the Bonus by whatever means i.e. monthly or yearly since the CTC is booked as Salary and wages in the Books of accounts of that particular year, Moreover the Asst. Manager is drawing a salary of Rs. 1.40 lacs so the bonus will be added in his Taxable Income also wherein the Accounts must have deducted the TDS.
If you require further assistance please let us know.
From India, Ahmadabad
If you require further assistance please let us know.
From India, Ahmadabad
Hi,
Statutory Bonus is not applicable if basic salary Per month is more than Rs. 10,000/-.
If you want to give then it will be ex-Gratia.
If you are talking about, performance bonus/ attendance bonus or Punctuality bonus as part of CTC then it will be payable only if the employee satisfies conditions related to it.
e.g. performance bonus is payable only when the employee shows the desired performance, achieves targets etc.
From India, Mumbai
Statutory Bonus is not applicable if basic salary Per month is more than Rs. 10,000/-.
If you want to give then it will be ex-Gratia.
If you are talking about, performance bonus/ attendance bonus or Punctuality bonus as part of CTC then it will be payable only if the employee satisfies conditions related to it.
e.g. performance bonus is payable only when the employee shows the desired performance, achieves targets etc.
From India, Mumbai
Hi.........
I am calculating first time bonus for all around 250 employees, before this company is paying on gross sal but now they want to pay as per law.....
If employee having salary 10,000 with basic 6000 in every month
bonus= (10000*12) * 8.33%= 9996 or 3,500 or (6000*12)*8.33%= 5998
if employee having salary 12,000 with basic 7200 in every month
bonus= (12000*12) * 8.33%= 11995 or 3,500 or (7200*12)*8.33%= 7197
what will be bonus amount considering no absentism.... As my confusion is whether it is calculated on 3,500 or 6000or 7200 or 10,000 or 12000
attribution https://www.citehr.com/455841-bonus-...#ixzz2Peq2GH00
From India, Mumbai
I am calculating first time bonus for all around 250 employees, before this company is paying on gross sal but now they want to pay as per law.....
If employee having salary 10,000 with basic 6000 in every month
bonus= (10000*12) * 8.33%= 9996 or 3,500 or (6000*12)*8.33%= 5998
if employee having salary 12,000 with basic 7200 in every month
bonus= (12000*12) * 8.33%= 11995 or 3,500 or (7200*12)*8.33%= 7197
what will be bonus amount considering no absentism.... As my confusion is whether it is calculated on 3,500 or 6000or 7200 or 10,000 or 12000
attribution https://www.citehr.com/455841-bonus-...#ixzz2Peq2GH00
From India, Mumbai
Dear Mamta ji,
The answer to your query is given earlier in many threads in this forum. However, for your ready reference I am giving it once again.
You said you want to calculate Bonus as per Law.
You will calculate the Bonus of last / previous accounting year(s) in respect of such employees who worked minimum 30 days during the respective accounting year and their rate of basic (basic DA component) is less than Rs. 10,000/- per month.
If basic (basic DA component) earning in a month is more than Rs. 3500/- you will calculate Bonus on Rs. 3500/-.
If basic (basic DA component) earning in a month is less than Rs. 3500/- you will calculate Bonus on actual earning.
You will calculate the bonus at appropriate percentage (min. 8.33% max. 20% depending upon the allocable surplus) on the earnings as stated above.
Hope this stuff is good enough for you. I have taken care of your query on absentism.
It seems you are from Mumbai. You may be in need of such kind of help / advise not only in Bonus Act but also in all the Labour Laws applicable to you. I am available to you on commercial terms and condition. If interested, please contact. Forum like this has lots of limitation.
From India, Mumbai
The answer to your query is given earlier in many threads in this forum. However, for your ready reference I am giving it once again.
You said you want to calculate Bonus as per Law.
You will calculate the Bonus of last / previous accounting year(s) in respect of such employees who worked minimum 30 days during the respective accounting year and their rate of basic (basic DA component) is less than Rs. 10,000/- per month.
If basic (basic DA component) earning in a month is more than Rs. 3500/- you will calculate Bonus on Rs. 3500/-.
If basic (basic DA component) earning in a month is less than Rs. 3500/- you will calculate Bonus on actual earning.
You will calculate the bonus at appropriate percentage (min. 8.33% max. 20% depending upon the allocable surplus) on the earnings as stated above.
Hope this stuff is good enough for you. I have taken care of your query on absentism.
It seems you are from Mumbai. You may be in need of such kind of help / advise not only in Bonus Act but also in all the Labour Laws applicable to you. I am available to you on commercial terms and condition. If interested, please contact. Forum like this has lots of limitation.
From India, Mumbai
Dear Agarwal,
This shoulld be seen as wholistic Apporach.
There is no ground rule says that the Bonus to be paid, since it is elicted in the appointment order. Because you are appointed as Asst.Manager and as stated by you, he would have comes out of statute, no sanctity will get in this case.
Because as far as this case is concern, this is an exgartia.
Your point won't withstand before law.
From India, Hosur
This shoulld be seen as wholistic Apporach.
There is no ground rule says that the Bonus to be paid, since it is elicted in the appointment order. Because you are appointed as Asst.Manager and as stated by you, he would have comes out of statute, no sanctity will get in this case.
Because as far as this case is concern, this is an exgartia.
Your point won't withstand before law.
From India, Hosur
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