Your bonus calculations of Rs. 3499 and Rs. 8400 are both correct, with 8.33% and 20%, respectively.
Regarding ex-gratia, it is up to the organization to decide as this is not a statutory obligation of the employer, and there is no specific law to be followed. If the organization is paying ex-gratia, that is commendable.
Concerning the different forms under the Payment of Gratuity Act, it is advisable to purchase a Bonus Register available in the market. These registers typically contain Form A (computation of the allocable surplus), Form B (showing the set-on and set-off of the allocable surplus), and Form C (detailing the bonus amount due to each employee, deductions, and the disbursed amount). Form D is a bonus return that needs to be filed at the Deputy Labor Commissioner's office.
Regards,
Kamal
From India, Pune
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186Regarding ex-gratia, it is up to the organization to decide as this is not a statutory obligation of the employer, and there is no specific law to be followed. If the organization is paying ex-gratia, that is commendable.
Concerning the different forms under the Payment of Gratuity Act, it is advisable to purchase a Bonus Register available in the market. These registers typically contain Form A (computation of the allocable surplus), Form B (showing the set-on and set-off of the allocable surplus), and Form C (detailing the bonus amount due to each employee, deductions, and the disbursed amount). Form D is a bonus return that needs to be filed at the Deputy Labor Commissioner's office.
Regards,
Kamal
From India, Pune
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Yes i also agree with Mr. Guru and Mr.Phani. If it exceed Rs 10000/- that can be accounted/paid as exgratia based on the company policy Anu
From India, Madras
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From India, Madras
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I do agree with Mr. Guru. He is absolutely right. However, there are other rules as well that make the company/employer liable for paying bonuses. First of all, the company should be in profit, and there are many other factors under which the employer can exclude themselves from paying bonuses. For more details, please refer to the BONUS ACT.
Ms. Bhagat
Mgr - HR
From India, Pune
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Ms. Bhagat
Mgr - HR
From India, Pune
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Yes Mr.Phani,bill for amendment was raised in 2010 and still it is not passed.Limit of salary is Rs.10000/-only as on date. Sant Tomar HR-IR Lafarge India P Ltd.
From India, Mumbai
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From India, Mumbai
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if organizations is running by loose from 2 years so is that organization need to pay bonus?
From India, Hyderabad
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From India, Hyderabad
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Dear,
If the establishment/factory is running under losses during the infancy period, then for this period, the employer is not liable to pay a bonus to its employees. However, if the infancy period is over, then even if there are losses in any of the accounting years, the employer is required to pay a minimum bonus of 8.33% to its eligible employees.
R.N.KHOLA
[Welcome Skylark Associates](http://www.skylarkassociates.com/)
From India, Delhi
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If the establishment/factory is running under losses during the infancy period, then for this period, the employer is not liable to pay a bonus to its employees. However, if the infancy period is over, then even if there are losses in any of the accounting years, the employer is required to pay a minimum bonus of 8.33% to its eligible employees.
R.N.KHOLA
[Welcome Skylark Associates](http://www.skylarkassociates.com/)
From India, Delhi
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Dear All, I m agree with Mr.D.PaniKumar,please. Shrikant. 9423376641
From India, Mumbai
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From India, Mumbai
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ESI its now is 15 k but proposal is for 25000 k. Guru is right bonus is minimum 8.33% mamaximum 20% but it has not take place yet
From India, Pune
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From India, Pune
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Still yet to get any amendment regarding the ceiling limit, they are likely to be revised to either 15,000/- or 19,000/-. The government is planning to raise the bonus amount to whichever is higher.
DVRAO
Group Senior Manager - HR & Admin
From India, Visakhapatnam
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DVRAO
Group Senior Manager - HR & Admin
From India, Visakhapatnam
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In September 2015, Shri Bandaru Dattatreya, the Minister of State for Labour and Employment, took note of the 12 demands presented by various trade unions and assured that the Central Government is actively working towards addressing at least 9 of these demands. Amongst other requests, the trade unions emphasized the need to revise the wage eligibility limit and calculation ceiling for bonus payments to align with current economic trends. They proposed increasing the wage eligibility limit from INR 10,000 to INR 21,000 and raising the calculation ceiling from INR 3,500 to INR 7,000 or the minimum wage set by the appropriate Government for that category of employment, whichever is higher.
Per the provisions of the Principal Act, any employee earning a salary of INR 10,000 or less per month and having worked for a minimum of 30 days in an accounting year is entitled to a bonus (calculated as per the methodology outlined in the Principal Act) with a minimum of 8.33% of their salary and a maximum bonus limit of 20% of their salary.
Previously, if an employee's salary exceeded INR 3,500 per month, the bonus calculation assumed their salary to be INR 3,500. The Amendment Act has now raised the wage ceiling for calculation to INR 7,000 and considered scenarios where the minimum wage for such employees may surpass INR 7,000, providing them with the opportunity to receive a higher bonus amount.
I trust this information clarifies any uncertainties.
Regards,
Malay, Manager HR
From India, Chennai
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Per the provisions of the Principal Act, any employee earning a salary of INR 10,000 or less per month and having worked for a minimum of 30 days in an accounting year is entitled to a bonus (calculated as per the methodology outlined in the Principal Act) with a minimum of 8.33% of their salary and a maximum bonus limit of 20% of their salary.
Previously, if an employee's salary exceeded INR 3,500 per month, the bonus calculation assumed their salary to be INR 3,500. The Amendment Act has now raised the wage ceiling for calculation to INR 7,000 and considered scenarios where the minimum wage for such employees may surpass INR 7,000, providing them with the opportunity to receive a higher bonus amount.
I trust this information clarifies any uncertainties.
Regards,
Malay, Manager HR
From India, Chennai
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