Dear HR Fraternity,
I have a question on the limit/ceiling of Bonus payable as per the act. I want to know the limit/ceiling of the bonus and if one exceeds the limit, how do we show the same in the registers. Please provide me with detailed formats through which the same can be maintained. I also want to know if the company is liable to pay a bonus in case an employee exceeds the ceiling/limit.
From India, Bangalore
Acknowledge(0)
Amend(0)
3I have a question on the limit/ceiling of Bonus payable as per the act. I want to know the limit/ceiling of the bonus and if one exceeds the limit, how do we show the same in the registers. Please provide me with detailed formats through which the same can be maintained. I also want to know if the company is liable to pay a bonus in case an employee exceeds the ceiling/limit.
From India, Bangalore
Acknowledge(0)Amend(0)
Dear SKM,
Bonus is calculated on the basic salary. The minimum percentage to be given as a bonus would be 8.33%, and the maximum percentage would be 20%. Anything given above 20% is called an ex-gratia payment.
Your second query is the limit of the bonus?
The limit for calculating the bonus is Rs. 10,000/- on the basic salary. Anyone drawing a basic salary that is more than Rs. 10,000/- is ineligible for a bonus as per the act. There are two types of bonuses: one is statutory bonus, and the other is a customary bonus. You have to show only the statutory bonus paid in the register maintained in Form C and D as per the bonus act. The company is not liable to pay a bonus if anyone crosses the limit.
From India, Madras
Acknowledge(3)
Amend(0)
Bonus is calculated on the basic salary. The minimum percentage to be given as a bonus would be 8.33%, and the maximum percentage would be 20%. Anything given above 20% is called an ex-gratia payment.
Your second query is the limit of the bonus?
The limit for calculating the bonus is Rs. 10,000/- on the basic salary. Anyone drawing a basic salary that is more than Rs. 10,000/- is ineligible for a bonus as per the act. There are two types of bonuses: one is statutory bonus, and the other is a customary bonus. You have to show only the statutory bonus paid in the register maintained in Form C and D as per the bonus act. The company is not liable to pay a bonus if anyone crosses the limit.
From India, Madras
Acknowledge(3)Amend(0)
Dear All, Kindly clear me if the bonus is paid above 20% on basic salary . for Example if bonus paid is 25% the 5% would be exgratia. Regards, Suman
From India, Patiala
Acknowledge(0)Amend(0)
From India, Patiala
Acknowledge(0)Amend(0)
Dear All, If someone is on maternity leave that time she is eligible for bonus so how to calculate ? what basic & spl to be consider ? — — — — - MANOJ PATIL 98222 72 152
From India, Pune
Acknowledge(1)Amend(0)
From India, Pune
Acknowledge(1)Amend(0)
But anyone who draws basic salary more than 10000/- is not eligible for bonus.but if company wishes then can give it or not??????
From India, Gurgaon
Acknowledge(1)Amend(0)
From India, Gurgaon
Acknowledge(1)Amend(0)
Dear HR team,
I have a situational query. Mr. X joined ABC Co. with an annual CTC of Rs 292,500 (Rs 22,500 per month and a yearly bonus of Rs 22,500). However, he resigned before completing one year. My question is: Is he still eligible for the bonus?
Regards,
Freddy.
From India, Mumbai
Acknowledge(1)
Amend(0)
I have a situational query. Mr. X joined ABC Co. with an annual CTC of Rs 292,500 (Rs 22,500 per month and a yearly bonus of Rs 22,500). However, he resigned before completing one year. My question is: Is he still eligible for the bonus?
Regards,
Freddy.
From India, Mumbai
Acknowledge(1)Amend(0)
Freddy,
If the basic+DA per month is less than Rs. 10,000/-, then only statutory bonus is payable. Please confirm this aspect so that I can provide you with further advice.
As far as the working duration is concerned, the statutory bonus is payable to an employee if they have worked for a minimum of 30 days in a financial year for which the bonus is to be paid. Please note that the bonus is always paid based on the number of days of service the employee has actually rendered. This means that if an employee has worked for 4 months in a financial year and resigns in the 5th month, they are entitled to the statutory bonus as they have worked for 30 days, but they will only receive the bonus for the 4 months worked and not for the entire period.
Please let me know if you need further clarification or assistance.
Thank you.
From India, Mumbai
Acknowledge(3)
Amend(0)
0
0
If the basic+DA per month is less than Rs. 10,000/-, then only statutory bonus is payable. Please confirm this aspect so that I can provide you with further advice.
As far as the working duration is concerned, the statutory bonus is payable to an employee if they have worked for a minimum of 30 days in a financial year for which the bonus is to be paid. Please note that the bonus is always paid based on the number of days of service the employee has actually rendered. This means that if an employee has worked for 4 months in a financial year and resigns in the 5th month, they are entitled to the statutory bonus as they have worked for 30 days, but they will only receive the bonus for the 4 months worked and not for the entire period.
Please let me know if you need further clarification or assistance.
Thank you.
From India, Mumbai
Acknowledge(3)Amend(0)CiteHR.AI
(Fact Checked)-The information provided in the user reply is accurate based on the Payment of Bonus Act, 1965. The criteria for statutory bonus eligibility and calculation are correctly outlined. (1 Acknowledge point)
0
0
Hi Manish,
The employee is in the executive (Assistant Manager) category, and the bonus indicated in his appointment letter was part of CTC (not a statutory bonus). However, no performance or profit-based conditions are mentioned in his appointment letter. In this case, if the company is not paying the bonus at the time of Full & Final settlement, can he go the judicial way?
Please advise.
Regards,
Freddy
From India, Mumbai
Acknowledge(2)
Amend(0)
0
0
The employee is in the executive (Assistant Manager) category, and the bonus indicated in his appointment letter was part of CTC (not a statutory bonus). However, no performance or profit-based conditions are mentioned in his appointment letter. In this case, if the company is not paying the bonus at the time of Full & Final settlement, can he go the judicial way?
Please advise.
Regards,
Freddy
From India, Mumbai
Acknowledge(2)Amend(0)CiteHR.AI
(Fact Checked)-The bonus mentioned in the appointment letter being part of CTC without any performance/profit-based condition does not necessarily make it non-statutory. If entitled, legal recourse can be pursued. (1 Acknowledge point)
0
0
Dear Sir/Madam,
I am confused about whether the word "Salary" or "Wages" in the Bonus Act is inclusive of Basic + D.A. or Basic + other allowances. Please clarify what is deemed correct according to the act. The Bonus limit is based on Salary or wages up to 10,000, but is it Basic + D.A. or the gross salary? Additionally, our company does not pay D.A. Our salary structure comprises Gross = Basic + HRA + Medical Allowance + Transportation Allowance + Education Allowance. Kindly confirm if all of these components fall under the definition of Salary or Wages in the Bonus Act.
Thank you.
From India, Nagpur
Acknowledge(0)Amend(0)
I am confused about whether the word "Salary" or "Wages" in the Bonus Act is inclusive of Basic + D.A. or Basic + other allowances. Please clarify what is deemed correct according to the act. The Bonus limit is based on Salary or wages up to 10,000, but is it Basic + D.A. or the gross salary? Additionally, our company does not pay D.A. Our salary structure comprises Gross = Basic + HRA + Medical Allowance + Transportation Allowance + Education Allowance. Kindly confirm if all of these components fall under the definition of Salary or Wages in the Bonus Act.
Thank you.
From India, Nagpur
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
CiteHR.AI
(Fact Checked)-The employee is entitled to a proportionate bonus for the period worked as per the Payment of Bonus Act, regardless of resignation. Ensure compliance with the Act. (1 Acknowledge point)