I think profit sharing bonus refers to bonus co outed on profits of the unit other than statutory bonus. It is computed based on profits and not based as a % of salary across the board
From India, Mumbai
2393From India, Mumbai
Respected BS Kalsi Sir & Umakanthan Sir
Thank you for you valued suggestion. Actually there are two columns in the Form IV under Payment of Wages Act, 1936. One column is for Profit Sharing Bonus & another is for Non Profit Sharing Bonus. Also many companies pay Exgratia in the name of Bonus. Thats why I am getting confused about which part of the Bonus will be Profit Sharing & which part will be Non Profit Sharing. . I also herewith attach Form IV & highlighted the columns for your perusal. I shall be highly obliged & grateful, if you can enlighten me.. Thank you....
Rehards,
Abhishek Bag
From India, Calcutta
Thank you for you valued suggestion. Actually there are two columns in the Form IV under Payment of Wages Act, 1936. One column is for Profit Sharing Bonus & another is for Non Profit Sharing Bonus. Also many companies pay Exgratia in the name of Bonus. Thats why I am getting confused about which part of the Bonus will be Profit Sharing & which part will be Non Profit Sharing. . I also herewith attach Form IV & highlighted the columns for your perusal. I shall be highly obliged & grateful, if you can enlighten me.. Thank you....
Rehards,
Abhishek Bag
From India, Calcutta
Respected Saswata Banerjee Sir,
Thank you for your comment. Sir, please enlighten me about the Profit Sharing Bonus & Non Profit Sharing Bonus . I attached Form IV in my previous comment for your perusal.
All seniors' valuable suggestions are highly appreciable.
Regards
Abhishek Bag
From India, Calcutta
Thank you for your comment. Sir, please enlighten me about the Profit Sharing Bonus & Non Profit Sharing Bonus . I attached Form IV in my previous comment for your perusal.
All seniors' valuable suggestions are highly appreciable.
Regards
Abhishek Bag
From India, Calcutta
Dear Abhishek Bag,
I appreciate your curiosity to know the intricacies of filling up the Form IV under Payment of Wages Act,1936 because sometimes we need to guide the staff working under us.You should understand that the coverage limit of both the Acts are different.I am of the view that column (4) in the Form-IV shall contain the amount of bonus paid under the Act and the deduction, if any, made from the same.You may relate it to Section 18 of the Payment of Bonus Act,1965 which allows an employer to deduct the amount of loss from the amount of bonus payable to an employee and pay him the balance.As expained in my earlier that the column 5(a) of Form-IV shall contain any amount, which is paid other than under the Payment of Bonus Act,1965.
The senior are requested give their expert views on my above mail.
BS Kalsi
Member since Aug 2011
From India, Mumbai
I appreciate your curiosity to know the intricacies of filling up the Form IV under Payment of Wages Act,1936 because sometimes we need to guide the staff working under us.You should understand that the coverage limit of both the Acts are different.I am of the view that column (4) in the Form-IV shall contain the amount of bonus paid under the Act and the deduction, if any, made from the same.You may relate it to Section 18 of the Payment of Bonus Act,1965 which allows an employer to deduct the amount of loss from the amount of bonus payable to an employee and pay him the balance.As expained in my earlier that the column 5(a) of Form-IV shall contain any amount, which is paid other than under the Payment of Bonus Act,1965.
The senior are requested give their expert views on my above mail.
BS Kalsi
Member since Aug 2011
From India, Mumbai
Item specified in item 5 of the form refers to statutory bonus, which i have explained is based on Allocable Surplus Register.
Profit sharing bonus is only in cases where additional bonus is given on a working that is based on profits made by the company, generally under a settlement, award or terms of employment.
I am not familier with the requirements of tamilnadu specifically.
If in doubt, you should ask the factory inspector of your region, he will clarify.
From India, Mumbai
Profit sharing bonus is only in cases where additional bonus is given on a working that is based on profits made by the company, generally under a settlement, award or terms of employment.
I am not familier with the requirements of tamilnadu specifically.
If in doubt, you should ask the factory inspector of your region, he will clarify.
From India, Mumbai
Dear Saswata ji,
I don't feel that any Government Officer will have answer to the query of Abhishek.
Comments by our learned member BS Kalsi are very right. You also said rightly that there are two kinds of bonus, one is statutory and another is non-statutory.
Non-statutory bonus you may call it by any name e.g. profit sharing, ex-gratia, performance bonus. team bonus etc.
In From V under POW Act the profit-bonus and not profit bonus has no meaning having in anybody's knowledge. The labour department can not tell you any thing as to what is it. The returns you submit, no one see it to my knowledge. This is I think, we should conclude this thread.
From India, Mumbai
I don't feel that any Government Officer will have answer to the query of Abhishek.
Comments by our learned member BS Kalsi are very right. You also said rightly that there are two kinds of bonus, one is statutory and another is non-statutory.
Non-statutory bonus you may call it by any name e.g. profit sharing, ex-gratia, performance bonus. team bonus etc.
In From V under POW Act the profit-bonus and not profit bonus has no meaning having in anybody's knowledge. The labour department can not tell you any thing as to what is it. The returns you submit, no one see it to my knowledge. This is I think, we should conclude this thread.
From India, Mumbai
Respected Kalsi Sir & Saswata Sir,
Format of Annual Return Form IV under Payment of Wages Act, 1936 are same in the state of Gujrat, Taminadu, Haryana, & Himachal Pradesh.
Sir, I understand that column 5(a) of Form-IV shall contain any amount, which is paid other than under the Payment of Bonus Act,1965 according to Kalsi Sir's opinion.
Also I understand that column 5 contains Statutory bonus according to Saswata Sir' s opinion.
Sir, I am again a little bit confused. Sir, it is my humble request before you to enlighten me a little bit.
To be honest, I did get any fair answer from concerned Govt. Dept.
Regards,
Abhishek Bag
From India, Calcutta
Format of Annual Return Form IV under Payment of Wages Act, 1936 are same in the state of Gujrat, Taminadu, Haryana, & Himachal Pradesh.
Sir, I understand that column 5(a) of Form-IV shall contain any amount, which is paid other than under the Payment of Bonus Act,1965 according to Kalsi Sir's opinion.
Also I understand that column 5 contains Statutory bonus according to Saswata Sir' s opinion.
Sir, I am again a little bit confused. Sir, it is my humble request before you to enlighten me a little bit.
To be honest, I did get any fair answer from concerned Govt. Dept.
Regards,
Abhishek Bag
From India, Calcutta
Sorry.. There was a typing mistake in the last line of my immediate previous comment. ... It should be read as "TO BE HONEST, I DID NOT GET ANY FAIR ANSWER FROM CONCERNED GOVT DEPT" instead of - 'To be honest, I did get any fair answer from concerned Govt. Dept.'
The mistake was unintentional.
Regards,
Abhishek Bag
From India, Calcutta
The mistake was unintentional.
Regards,
Abhishek Bag
From India, Calcutta
Dear Sir ,
I Appreciate for your valuable information , In connection to this i would like to know " If company is not paying Bonus to employee as the company is in huge losses " what employees should do?
regards
Ramana
From India, Bangalore
I Appreciate for your valuable information , In connection to this i would like to know " If company is not paying Bonus to employee as the company is in huge losses " what employees should do?
regards
Ramana
From India, Bangalore
The workers can complain to the relevant authorities under Bonus Act
And also under Payment of Wages Act.
A complain generally results in the government machinery taking action.
If the bonus is still not paid, you may have no option but to go to the labour court.
The court can attach the assets of the company and ask the authorities to recover the money. But the factory then would be closed and the workers will be without a job.
From India, Mumbai
And also under Payment of Wages Act.
A complain generally results in the government machinery taking action.
If the bonus is still not paid, you may have no option but to go to the labour court.
The court can attach the assets of the company and ask the authorities to recover the money. But the factory then would be closed and the workers will be without a job.
From India, Mumbai
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