Dear All,
In response to Mr. Rao's query: The Bonus Act is a Central Act and is applicable throughout India.
In response to Mr. Mahesh's query: If the employee is drawing a salary exceeding Rs. 3500 but less than Rs. 10000, he is eligible to receive a bonus, but considering the wage limit as Rs. 3500. However, if the employee is on Loss of Pay, deduct the pay equivalent (LOP) from the Basic + DA. If this figure falls between Rs. 3500 and Rs. 10000, consider that he has earned Rs. 3500 (Wage ceiling). If the figure is lower than Rs. 3500, for example, Rs. 3400, then consider it as Rs. 3400. In other words, do not consider the wage ceiling (Rs. 3500) for computing the earned wages.
M.V. KANNAN
From India, Madras
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270In response to Mr. Rao's query: The Bonus Act is a Central Act and is applicable throughout India.
In response to Mr. Mahesh's query: If the employee is drawing a salary exceeding Rs. 3500 but less than Rs. 10000, he is eligible to receive a bonus, but considering the wage limit as Rs. 3500. However, if the employee is on Loss of Pay, deduct the pay equivalent (LOP) from the Basic + DA. If this figure falls between Rs. 3500 and Rs. 10000, consider that he has earned Rs. 3500 (Wage ceiling). If the figure is lower than Rs. 3500, for example, Rs. 3400, then consider it as Rs. 3400. In other words, do not consider the wage ceiling (Rs. 3500) for computing the earned wages.
M.V. KANNAN
From India, Madras
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Dear KVRao,
You are correct that the bonus act is applicable throughout India. The same act is also applicable in all states except Jammu & Kashmir.
Amol Deokar
amolsdeokar@gmail.com
9730595960
Asst. Manager, HR
From India, Mumbai
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You are correct that the bonus act is applicable throughout India. The same act is also applicable in all states except Jammu & Kashmir.
Amol Deokar
amolsdeokar@gmail.com
9730595960
Asst. Manager, HR
From India, Mumbai
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Dear All,
I am attaching a bonus calculator that has formulas in the Excel sheet. All you need to do is input the monthwise attendance and the actual salary details. The formulas will do their job. The formulas may need to be suitably changed with the new amendments coming into force. I hope you all find it useful.
P.R. Joshi
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I am attaching a bonus calculator that has formulas in the Excel sheet. All you need to do is input the monthwise attendance and the actual salary details. The formulas will do their job. The formulas may need to be suitably changed with the new amendments coming into force. I hope you all find it useful.
P.R. Joshi
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Hi, As per Bonus act if the employee is not present for at least 30 days in yr., then he is not liable for the Bonus. regards Madhura.
From India
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From India
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To: Dear Mahesh and all others who have posted their replies,
There seems to be so much half-understanding on the Bonus issue:
Please note the following points:
1. Bonus is payable for the accounting year Apr to Mar. For 2010, bonus is payable for Apr '09 to Mar '10 before Nov '10.
2. Returns have to be submitted by 30th Dec '2010
3. 8.33% of the wages - Basic + DA earned by the employee during the financial year is payable as Bonus
4. All employees, whose basic + DA is Rs.10,000 and below are eligible for bonus
5. The maximum bonus payable is Rs.3500/-.
6. If an employee's wages (basic+DA) are more than Rs.3500/-, for calculating bonus only Rs.3500/- to be taken as wages (but eligibility for paying bonus is Rs.10,000/-)
7. Employees who have worked for a minimum of 30 days are eligible. If less than 30 days, they are not eligible for a bonus
8. Bonus Act is a central Government Act and is applicable all over India
9. There is no amendment to the Bonus Act to pay more than Rs.3500/- or more than 8.33% as of now
Regards
K. Ramachandra
Bangalore
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There seems to be so much half-understanding on the Bonus issue:
Please note the following points:
1. Bonus is payable for the accounting year Apr to Mar. For 2010, bonus is payable for Apr '09 to Mar '10 before Nov '10.
2. Returns have to be submitted by 30th Dec '2010
3. 8.33% of the wages - Basic + DA earned by the employee during the financial year is payable as Bonus
4. All employees, whose basic + DA is Rs.10,000 and below are eligible for bonus
5. The maximum bonus payable is Rs.3500/-.
6. If an employee's wages (basic+DA) are more than Rs.3500/-, for calculating bonus only Rs.3500/- to be taken as wages (but eligibility for paying bonus is Rs.10,000/-)
7. Employees who have worked for a minimum of 30 days are eligible. If less than 30 days, they are not eligible for a bonus
8. Bonus Act is a central Government Act and is applicable all over India
9. There is no amendment to the Bonus Act to pay more than Rs.3500/- or more than 8.33% as of now
Regards
K. Ramachandra
Bangalore
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Dear Friend,
As per the calculation of bonus, only those employees are covered who have worked for 30 days in an organization, and their salary (Basic+D.A) is less than 10000. According to the bonus policy, the minimum bonus payable is 8.33%, and the maximum is 20% of the Salary (Basic+D.A), i.e. on 3500/-
For the calculation of Bonus:
Suppose an employee joins an organization, and their salary (Basic+D.A) is less than 10000. Then, for bonus calculation, consider the salary (Basic+D.A) as Rs. 3500/-. Now, if the organization decides to give a 20% bonus, then for one month, the bonus is 3500*20% = 700.
If an employee works for 15 days in a month (July), then their calculation is:
3500 * 15 / (total days of the month) * 20% = Rs. 339.
For more details, please find the attachment.
From India, Delhi
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As per the calculation of bonus, only those employees are covered who have worked for 30 days in an organization, and their salary (Basic+D.A) is less than 10000. According to the bonus policy, the minimum bonus payable is 8.33%, and the maximum is 20% of the Salary (Basic+D.A), i.e. on 3500/-
For the calculation of Bonus:
Suppose an employee joins an organization, and their salary (Basic+D.A) is less than 10000. Then, for bonus calculation, consider the salary (Basic+D.A) as Rs. 3500/-. Now, if the organization decides to give a 20% bonus, then for one month, the bonus is 3500*20% = 700.
If an employee works for 15 days in a month (July), then their calculation is:
3500 * 15 / (total days of the month) * 20% = Rs. 339.
For more details, please find the attachment.
From India, Delhi
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Dear Mahesh,
First of all, you are not legally obligated to give a bonus as the employee has not worked for the whole month. If you choose to give a bonus, it should be based on earnings, i.e., 3500/30 X 18 = 2100. The percentage, as declared by management, will determine the bonus amount. For example, if the percentage is 10%, then the bonus amount will be 210/-.
Hope this explanation satisfies your query.
Regards,
Avinash
From India, Indore
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First of all, you are not legally obligated to give a bonus as the employee has not worked for the whole month. If you choose to give a bonus, it should be based on earnings, i.e., 3500/30 X 18 = 2100. The percentage, as declared by management, will determine the bonus amount. For example, if the percentage is 10%, then the bonus amount will be 210/-.
Hope this explanation satisfies your query.
Regards,
Avinash
From India, Indore
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Hi, How to calculate bonus,if a person has worked for 10 months in an organisation and his salary is Rs.6000
From India, Bangalore
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From India, Bangalore
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Dear Pavithra, tell which is ten month is it in financial year if yes than bonus is calculated on the basis of 3500* 8.33% or 20% * 10 month . Regards, Mahesh
From India, Surat
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From India, Surat
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Relax, guys. The proposed Bonus Amendment Bill is a private Bill No. 15 of 2010, introduced by an MP. Normally, MPs introduce private bills as their privilege. Such bills are usually withdrawn after the reply of the concerned Minister. I think in this case also, it is unlikely to become an act as of now.
C.P. Bhartia
From India, Bhubaneswar
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C.P. Bhartia
From India, Bhubaneswar
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