Hi All,
I have posted this query in other thread but didn’t get any response.I have few more doubts about Payment of Bonus Act:
From India, Mumbai
I have posted this query in other thread but didn’t get any response.I have few more doubts about Payment of Bonus Act:
- Penalty of non payment of bonus is 6months imprisonment or fine up to 1000 as per the Act….is it the updated one?
- Which department is responsible for maintaining register or record for available or allocable surplus? Is it HR or Accounts?
- Is it acceptable if a company pays 8.33% of 3500 to employees who’s basic is less than 10,000 without maintaining any register or record for available or allocable surplus?
- Which Gov. Dept. can enquire for payment of Bonus? …Shops & Establishment Inspector? or Sales Tax Officer?
From India, Mumbai
dear
HR dept can not maintain A&B register of bonus ,which should be maintained by acconts.bonus is paid as per allocable surplus of five years.labour authorites even can ask for balance sheet.
tks
j s malik
From India, Delhi
167HR dept can not maintain A&B register of bonus ,which should be maintained by acconts.bonus is paid as per allocable surplus of five years.labour authorites even can ask for balance sheet.
tks
j s malik
From India, Delhi
Thanks for replying. I have few more queries as stated below:
I am working in a Software Company where employee strength is more than 100 and more then 50% of the employees are earning below 10,000/- as basic salary. Bonus is not provided, can the employees demand for the same? What are the consequences of non payment of bonus? Being a newly joined HR what should be my role in such a situation?
From India, Mumbai
I am working in a Software Company where employee strength is more than 100 and more then 50% of the employees are earning below 10,000/- as basic salary. Bonus is not provided, can the employees demand for the same? What are the consequences of non payment of bonus? Being a newly joined HR what should be my role in such a situation?
From India, Mumbai
Statutory Bonus @ 8.33% shall be demanded by those whose monthly salary (basic + DA) does not exceed Rs 10000. They will be eligible for bonus on their salary of Rs 3500 only. The rate of bonus shall be fixed according to the profitability and following an agreement with the employees in this regard.
Failure to comply with statutory provisions is an offence as per any Act but the fine or imprisonment provisions cannot be taken as final but is subject to the decision by the competent authority. What is to be ensured as an HR person is that to avoid penal provisions attached to any enactment. Though much of the calculations involve Accounts and Profit & Loss accounts, the responsibility of getting the bonus calculated and disbursed lies with HR person only. When an complaint for non payment of bonus is made before the competent authority, the District Labour Officer, it is not the Accountant who has to give reply but the HR person will be answerable. An HR person should not wait for the employees to come and demand for bonus, rather he should take initiative to work out the amount.
Regards,
Madhu.T.K
From India, Kannur
Failure to comply with statutory provisions is an offence as per any Act but the fine or imprisonment provisions cannot be taken as final but is subject to the decision by the competent authority. What is to be ensured as an HR person is that to avoid penal provisions attached to any enactment. Though much of the calculations involve Accounts and Profit & Loss accounts, the responsibility of getting the bonus calculated and disbursed lies with HR person only. When an complaint for non payment of bonus is made before the competent authority, the District Labour Officer, it is not the Accountant who has to give reply but the HR person will be answerable. An HR person should not wait for the employees to come and demand for bonus, rather he should take initiative to work out the amount.
Regards,
Madhu.T.K
From India, Kannur
Sir,
3500 is fixed or Based on the Basic + DA it differs,
For Examlpe 6000 is the Basic + DA
As per Calulation 6000*12*8.33% or Even he gets 6000 as basic we would go for
3500*12*8.33% as minimum which one is correct
Please guide me, waiting for your kind reply
Regards,
KarthiK
From India, Thrissur
3500 is fixed or Based on the Basic + DA it differs,
For Examlpe 6000 is the Basic + DA
As per Calulation 6000*12*8.33% or Even he gets 6000 as basic we would go for
3500*12*8.33% as minimum which one is correct
Please guide me, waiting for your kind reply
Regards,
KarthiK
From India, Thrissur
An employee who gets salary (Basic + DA) upto Rs 10000 (not Rs 10001) will get bonus worked out at a salary of Rs 3500. That is 3500 X 12 X rate of bonus (8.33% or as agreed) Regards, Madhu.T.K
From India, Kannur
From India, Kannur
But is never said in bonus act that employee who is earning Rs. 10,000 or more is not eligible for bonus. As per the act "8.Eligibility for bonus.—Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year."
can anybody clarifies further on this?
Regards,
Venkat
From India, Bangalore
can anybody clarifies further on this?
Regards,
Venkat
From India, Bangalore
Dear Madhu.T.K Sir,
I have a query please reply
1. As the bonus is calculated by Allocable surplus and set on and Set off (A+B Register). The bonus figures provided by the HR Department is entered in the balance sheet. Now suppose we have engaged some contractor employees. Should the HR Department has also calculate the bonus of contractor employee or only those employee who are directly engaged by the PE? Secondly, the bonus amount of contractor employee is entered in which balance sheet (PE or Contractor)
2. As the Allocable surplus and set on and Set off register is maintained by balance sheet but the bonus figure by hr department is provided before finalizing the Balance sheet. Suppose HR Department calculate bonus @20% but when the balance is finalized and Allocable surplus is calculated, at that time it is realized that no profit has been made than at that time bonus amount can be reduced for that year as the HR Department has already maintained "Form C"
Regards
Dinesh Kumar
From India, New Delhi
I have a query please reply
1. As the bonus is calculated by Allocable surplus and set on and Set off (A+B Register). The bonus figures provided by the HR Department is entered in the balance sheet. Now suppose we have engaged some contractor employees. Should the HR Department has also calculate the bonus of contractor employee or only those employee who are directly engaged by the PE? Secondly, the bonus amount of contractor employee is entered in which balance sheet (PE or Contractor)
2. As the Allocable surplus and set on and Set off register is maintained by balance sheet but the bonus figure by hr department is provided before finalizing the Balance sheet. Suppose HR Department calculate bonus @20% but when the balance is finalized and Allocable surplus is calculated, at that time it is realized that no profit has been made than at that time bonus amount can be reduced for that year as the HR Department has already maintained "Form C"
Regards
Dinesh Kumar
From India, New Delhi
We are only concerned about direct employees and the bonus of contract employees is to be provided by the contractor in his balance sheet. It is true that in case the contractor fails to pay bonus to his employees, being the principal employer the obligation to pay statutory bonus to the workers who work for him becomes his liability but whatever amount is so disbursed will not figure in the forms since it is not an expense to him but the amount is recoverable from the contractor.
Allocable surplus is to be found out only after preparation of balance sheet and the HR cannot provide for the bonus before knowing what exactly is the liability. It is purely a function of Finance department and not HR department. If HR has already given his estimate of bonus at the rate of 20%, it is only provision. If the available surplus is less, pay lesser bonus.
Madhu.T.K
From India, Kannur
Allocable surplus is to be found out only after preparation of balance sheet and the HR cannot provide for the bonus before knowing what exactly is the liability. It is purely a function of Finance department and not HR department. If HR has already given his estimate of bonus at the rate of 20%, it is only provision. If the available surplus is less, pay lesser bonus.
Madhu.T.K
From India, Kannur
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