Definition and applicability of the act :
a)In every establishment and factory employing 10 or more persons with the aid of power and 20 or more persons without the aid of power .
b) in respect of the commencement of books of account in an accounting year
c) the accounts are closed and balanced even if there is profit or loss is maintained and
d) set-on and set-off allocable surplus
e) bonus denotes gross salary and DA(dearness allowance) and the usual fringe benefits.
f) The provision of payment of bonus does not include any employer's contribution to pension ,provident fund ,gratuity payable on retirement
Eligibility of payment of minimum bonus :
a) All covered employees will be eligible for bonus only when he has worked for 30 working days in that accounting year, i.e.accrual of bonus after completion of minimum 30 working days in a year
Eligible Employees :
a) Employees wages to Rs.10,000 upto Rs. 15,000 per month or beyond
Calculation of bonus :
a) Existing salary limit is Rs.5000 p.m. celing increased from Rs.3500 p.m.
For calculation purpose Rs. 5000 p.m. is the limit
b) The minimum bonus limit enhanced from 8.33% to 11% , the maximum bonus limit is 20% ,following amendment of payment of bonus amendment 2010 (15 of 2010)
Method of calculation of bonus :
Gross Salary / bonus limit * min or max bonus percentage * no.of month worked in a year
e.g. If an employee actual gross salary = Rs.7000 / bonus limit i.e. Rs. 5000 *min bonus limit i.e. 8.33% or max bonus limit i.e. 11% *no.of months worked in a year i.e. 09 months( for example ) = Payment of bonus to an employee in that accounting year .
Time limit for payment of bonus :
Covered employees for the purpose of payment of bonus the provision is 8 months from the close of accounting year .
The regulated act of The payment of Wages act ,1936 follows that the term 'wages' include additional remuneration payable under the terms of employment whether called a bonus under a scheme of profit sharing but does not form part of the remuneration payable under the terms employment by nature of award or settlement between the parties or order of a court .
From India, New Delhi
1a)In every establishment and factory employing 10 or more persons with the aid of power and 20 or more persons without the aid of power .
b) in respect of the commencement of books of account in an accounting year
c) the accounts are closed and balanced even if there is profit or loss is maintained and
d) set-on and set-off allocable surplus
e) bonus denotes gross salary and DA(dearness allowance) and the usual fringe benefits.
f) The provision of payment of bonus does not include any employer's contribution to pension ,provident fund ,gratuity payable on retirement
Eligibility of payment of minimum bonus :
a) All covered employees will be eligible for bonus only when he has worked for 30 working days in that accounting year, i.e.accrual of bonus after completion of minimum 30 working days in a year
Eligible Employees :
a) Employees wages to Rs.10,000 upto Rs. 15,000 per month or beyond
Calculation of bonus :
a) Existing salary limit is Rs.5000 p.m. celing increased from Rs.3500 p.m.
For calculation purpose Rs. 5000 p.m. is the limit
b) The minimum bonus limit enhanced from 8.33% to 11% , the maximum bonus limit is 20% ,following amendment of payment of bonus amendment 2010 (15 of 2010)
Method of calculation of bonus :
Gross Salary / bonus limit * min or max bonus percentage * no.of month worked in a year
e.g. If an employee actual gross salary = Rs.7000 / bonus limit i.e. Rs. 5000 *min bonus limit i.e. 8.33% or max bonus limit i.e. 11% *no.of months worked in a year i.e. 09 months( for example ) = Payment of bonus to an employee in that accounting year .
Time limit for payment of bonus :
Covered employees for the purpose of payment of bonus the provision is 8 months from the close of accounting year .
The regulated act of The payment of Wages act ,1936 follows that the term 'wages' include additional remuneration payable under the terms of employment whether called a bonus under a scheme of profit sharing but does not form part of the remuneration payable under the terms employment by nature of award or settlement between the parties or order of a court .
From India, New Delhi
To my knowledge, the bonus payble to an employee whose salary exceeds Rupees 3500/- per mensem shall be calculated as if his his salary or wage were 3500 rupees per mensem. Has it been revised upward to 5000? if so has the amendment come in to force and effective from which date?
A.k.Mishra
From India, Bhubaneswar
A.k.Mishra
From India, Bhubaneswar
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