Dear Members, can you please help me understand how the Allocable surplus to be distributed among employees.
Case-1:-If it is more than Minimum bonus lets say 3L as Allocable Surplus and 1.5L is the Minimum bonus.
Case-2:-If it is more than Maximum Bonus say 5L as Allocable Surplus and 2L is the Maximum bonus.
There are 90 employees who are eligible for Bonus. How much each will get? Please help..
From India, Dhanbad
21Case-1:-If it is more than Minimum bonus lets say 3L as Allocable Surplus and 1.5L is the Minimum bonus.
Case-2:-If it is more than Maximum Bonus say 5L as Allocable Surplus and 2L is the Maximum bonus.
There are 90 employees who are eligible for Bonus. How much each will get? Please help..
From India, Dhanbad
Dear Amlan,
I think that there would not have been your above questions, had you have the patience to go through sections 10,11 and 15 of the Payment of Bonus Act,1965 before raising them.
As per sec.10, the employer has to pay the minimum bonus of 8.33% even if he has no allocable surplus in an accounting year.
Section 11 clearly mandates that whenever the allocable surplus in an accounting year exceeds the amount of minimum bonus payable, the employer should pay bonus at a higher rate subject to the maximum of 20% of the salary/wage earned by the employee.
Section 15(1) of the Act prescribes that the excess of the allocable surplus beyond the maximum bonus shall be carried forward for being set on in the succeeding year subject to a limit of 20% of the salary/wages in that accounting year and so on upto the fourth year. Better you see my file titled " The Principles of set on and set off under the Payment of Bonus Act,1965".
From India, Salem
I think that there would not have been your above questions, had you have the patience to go through sections 10,11 and 15 of the Payment of Bonus Act,1965 before raising them.
As per sec.10, the employer has to pay the minimum bonus of 8.33% even if he has no allocable surplus in an accounting year.
Section 11 clearly mandates that whenever the allocable surplus in an accounting year exceeds the amount of minimum bonus payable, the employer should pay bonus at a higher rate subject to the maximum of 20% of the salary/wage earned by the employee.
Section 15(1) of the Act prescribes that the excess of the allocable surplus beyond the maximum bonus shall be carried forward for being set on in the succeeding year subject to a limit of 20% of the salary/wages in that accounting year and so on upto the fourth year. Better you see my file titled " The Principles of set on and set off under the Payment of Bonus Act,1965".
From India, Salem
Respected Umakanthan Sir, Thank you for the inputs you have given.Sorry for the Case-2. I should have not asked it.I have gone through the Sec 10 & 11.But still having doubt in practical application.
As per your valuable inputs I would like request you to kindly help me further more to understand Sec 11 "what is that higher rate" as mentioned by you. My allocable surplus is more than Minimum & less than maximum bonus amount.
Please help me in Case-1:-Allocable Surplus is 2L more than Minimum Bonus calculated i.e. 1L. Number of Employees 100(Worked for entire 365 days). What is the higher Rate at which bonus to be paid to each employee.
From India, Dhanbad
As per your valuable inputs I would like request you to kindly help me further more to understand Sec 11 "what is that higher rate" as mentioned by you. My allocable surplus is more than Minimum & less than maximum bonus amount.
Please help me in Case-1:-Allocable Surplus is 2L more than Minimum Bonus calculated i.e. 1L. Number of Employees 100(Worked for entire 365 days). What is the higher Rate at which bonus to be paid to each employee.
From India, Dhanbad
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc