Hi, The payment of statutory bonus is for the service of period till 30th of September every year. My question is if someone who is eligible for the statutory bonus leaves the company by December or anytime during the year after the last payout and is not in the company rolls during the actual Bonus payout in the present year, will the company still have to pay the bonus prorated for the number of months that he was there after the last payout period. And Is this applicable to ITES industry? What is the Industry standard for payment of Statutory in the ITES industry?
- Lorein
From India, Bangalore
1- Lorein
From India, Bangalore
Dear Friend
As per Bonus Act, employee who draws gross wage below Rs 10000/- (Basic & DA) and who works for not less than 30 actual working days during last financial year, is having an eligibility to get bonus on monthly average of Rs 3500/- (Ceiling fixed by act for calculation purpose) for current year. Last date for making payment of bonus is fixed within 8 months on any date from closing the accounts of company i.e 31st March. By this way, the payment should be made on or before 30th November in every year.
With regard to your query about making payment to left employees, the management must pay bonus for them also proportionately for the period of their working during last financial year.The rate of bonus will always be depending upon available surplus and allocable surplus for which the range will be from 8.33% to 20%
Regards
From India, Hyderabad
As per Bonus Act, employee who draws gross wage below Rs 10000/- (Basic & DA) and who works for not less than 30 actual working days during last financial year, is having an eligibility to get bonus on monthly average of Rs 3500/- (Ceiling fixed by act for calculation purpose) for current year. Last date for making payment of bonus is fixed within 8 months on any date from closing the accounts of company i.e 31st March. By this way, the payment should be made on or before 30th November in every year.
With regard to your query about making payment to left employees, the management must pay bonus for them also proportionately for the period of their working during last financial year.The rate of bonus will always be depending upon available surplus and allocable surplus for which the range will be from 8.33% to 20%
Regards
From India, Hyderabad
As NVRao has rightly said, the statutory bonus is calculated on Financial Year surplus and not calculated from October to September, hence the left employee is eligible for 9 month Bonus on pro rata basis.
From India, Ahmadabad
From India, Ahmadabad
Hi,
The bonus can be claimed as unpaid wages.In this regard you can approach the nearest Labour Office concerned, seek their advice and have the application for unpaid bonus filed with the Authority for Payment of Wages .
Thanks and regards
S.K.Johri
From India, Delhi
The bonus can be claimed as unpaid wages.In this regard you can approach the nearest Labour Office concerned, seek their advice and have the application for unpaid bonus filed with the Authority for Payment of Wages .
Thanks and regards
S.K.Johri
From India, Delhi
As per the Payment of Bonus Act, Bonus for an accounting year is payable to an eligible employee who has worked in the establishment for at least 30 days during that accounting year. The bonus amount is to be paid to the eligible employee within 8 months of the end of that accounting year. If the eligible employee leaves the establishment before the disbursement of the bonus for the preceding accounting year, he will have to be paid bonus for that accounting year if he has worked for at least 30 days during the said accounting year calculated on pro rata basis. In fact, if he leave the establishment during the accounting year, he will still have to be paid when it is disbursed to the employees after the close of the accounting year for the period he had served during the said accounting year, provided he had worked for at least 30 days.
Thanks.
G. Hari
From India, Alappuzha
Thanks.
G. Hari
From India, Alappuzha
Dear Lorein,
Though my learned colleagues Sh N.V.Rao & Sh G.Hari has given very descriptive legal position in order to resolve your problem.I would like to give reply to your query in seriatim, which is as under-
(i) If someone who is eligible for the statutory bonus leaves the company by December or anytime during the year after the last payout and is not in the company rolls during the actual Bonus payout in the present year- Section 8 of the Payment of Bonus Act,1965 stipulates that every employee, who has worked in the establishment for at least 30 days during that accounting year shall be entitled to payment of bonus even if his name is not borne on the muster rolls of the company on the day of the declaration or payment of bonus.
(ii) Will the company still have to pay the bonus prorated for the number of months that he was there after the last payout period -Yes,under Section 13 of the Payment of Bonus Act,1965, a company is under an obligation to pay bonus to their employees proportionately for the period they have worked during last financial year.
(iii) Is Payment of Bonus Act,1965 applicable to ITES industry? The Act is applicable to (a) every factory as defined under the Factories Act,1948 and (b) every other establishment in which twenty or more persons are employed on any day during an accounting year. Since ITES industries has been classified as commercial establishments and Payment of Bonus Act,1965 covers all such establishments in which twenty or more persons are employed on any day during an accounting year. In Maharashtra, the Payment of Bonus Act,1965 has been applied to all establishments which employs ten or more employees on any day during that accounting year.
(iv) What is the Industry standard for payment of Statutory in the ITES industry?- There is no seprate standard for payment of Statutory bonus in the ITES industry subject to application of Section 16 of the Payment of Bonus Act,1965 which provides certain concession to the newly set up establishments.
BS Kalsi
From India, Mumbai
Though my learned colleagues Sh N.V.Rao & Sh G.Hari has given very descriptive legal position in order to resolve your problem.I would like to give reply to your query in seriatim, which is as under-
(i) If someone who is eligible for the statutory bonus leaves the company by December or anytime during the year after the last payout and is not in the company rolls during the actual Bonus payout in the present year- Section 8 of the Payment of Bonus Act,1965 stipulates that every employee, who has worked in the establishment for at least 30 days during that accounting year shall be entitled to payment of bonus even if his name is not borne on the muster rolls of the company on the day of the declaration or payment of bonus.
(ii) Will the company still have to pay the bonus prorated for the number of months that he was there after the last payout period -Yes,under Section 13 of the Payment of Bonus Act,1965, a company is under an obligation to pay bonus to their employees proportionately for the period they have worked during last financial year.
(iii) Is Payment of Bonus Act,1965 applicable to ITES industry? The Act is applicable to (a) every factory as defined under the Factories Act,1948 and (b) every other establishment in which twenty or more persons are employed on any day during an accounting year. Since ITES industries has been classified as commercial establishments and Payment of Bonus Act,1965 covers all such establishments in which twenty or more persons are employed on any day during an accounting year. In Maharashtra, the Payment of Bonus Act,1965 has been applied to all establishments which employs ten or more employees on any day during that accounting year.
(iv) What is the Industry standard for payment of Statutory in the ITES industry?- There is no seprate standard for payment of Statutory bonus in the ITES industry subject to application of Section 16 of the Payment of Bonus Act,1965 which provides certain concession to the newly set up establishments.
BS Kalsi
From India, Mumbai
Dear Friends i am working in a big shop , what is the policy about bonus and what is maximum & minimum limit of bonus brief about
From India, New Delhi
From India, New Delhi
Dear Pramod,
The minimum bonus of 8.33% is payable by every industry and establishment under section 10 of the Act. The maximum bonus including productivity linked bonus that can be paid in any accounting year shall not exceed 20% of the salary/wage of an employee under the section 31 A of the Act.
Eligibility limit : 21,000
Calculation ceiling : Rs. 7000 Or the minimum wage for scheduled employment, as fixed by the appropriate Government, whichever is higher.
From India, Mumbai
The minimum bonus of 8.33% is payable by every industry and establishment under section 10 of the Act. The maximum bonus including productivity linked bonus that can be paid in any accounting year shall not exceed 20% of the salary/wage of an employee under the section 31 A of the Act.
Eligibility limit : 21,000
Calculation ceiling : Rs. 7000 Or the minimum wage for scheduled employment, as fixed by the appropriate Government, whichever is higher.
From India, Mumbai
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.
Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc