Dear Seniors,
As per bonus Act amendment 2007, which is the latest guideline for payment of Bonus , i require some clarification
a) All employees whose salary is less than or equal to RS 10,000/- per month are eligible for Bonus?
b) But the Maximum Bonus Payable is on the calculation of Rs 3,500/- per month.
c) Should the basic +DA is Rs 4000/-, what will be applicable?
d) If our company has decided to pay 10% Bonus this year. Could some one demonstrate an example?
:-?:-?:-?I am not clear on what is Rs 10,000/- and Rs 3,500/- exactly mean in the act. Attached the Official Gazette on this.:-?:-?:-?
Requesting Seniors help:icon9::icon9::icon9: i clarifying the Bonus Act concept.
Regards,
Vicky8-)8-)8-)
From India, Hyderabad
As per bonus Act amendment 2007, which is the latest guideline for payment of Bonus , i require some clarification
a) All employees whose salary is less than or equal to RS 10,000/- per month are eligible for Bonus?
b) But the Maximum Bonus Payable is on the calculation of Rs 3,500/- per month.
c) Should the basic +DA is Rs 4000/-, what will be applicable?
d) If our company has decided to pay 10% Bonus this year. Could some one demonstrate an example?
:-?:-?:-?I am not clear on what is Rs 10,000/- and Rs 3,500/- exactly mean in the act. Attached the Official Gazette on this.:-?:-?:-?
Requesting Seniors help:icon9::icon9::icon9: i clarifying the Bonus Act concept.
Regards,
Vicky8-)8-)8-)
From India, Hyderabad
Dear Vicky,
before 2007 the salary limit is 3500/- for eligibility of bonus payment but after the amendmend this limit raised upto 10000/-.
and before amendmend for calculation purpose Rs. 2500/- is considered as basis, but after the amendmend this limit raised to Rs. 3500/-.
Ihope you got your answer.
Yogesh kumar Gupta
From India, New Delhi
before 2007 the salary limit is 3500/- for eligibility of bonus payment but after the amendmend this limit raised upto 10000/-.
and before amendmend for calculation purpose Rs. 2500/- is considered as basis, but after the amendmend this limit raised to Rs. 3500/-.
Ihope you got your answer.
Yogesh kumar Gupta
From India, New Delhi
a) Yes, all employees whose salary is equal to or below Rs. 10,000 per month will be eligible for bonus, subject to a minimum attendance of 30 days in the corresponding accounting year.
b) Maximum salary for bonus calculation will be Rs. 3500. Accordingly the maximum bonus will be 3500x12x20% = Rs. 8400.
c) Even if the basic+DA is Rs. 4000, only Rs. 3500 will be taken into account for bonus calculation.
d) If bonus is 10% and the salary to calculate bonus is Rs. 3500, then the calculation will be as follows.
3500x12x10% = Rs. 4200.
This amount viz. Rs. 4200 is for full year attendance. If the attendace is 8 months out of 12 months, then the bonus entitled will be 4200x8/12= 2800.
Abbas.P.S
From India, Bangalore
517b) Maximum salary for bonus calculation will be Rs. 3500. Accordingly the maximum bonus will be 3500x12x20% = Rs. 8400.
c) Even if the basic+DA is Rs. 4000, only Rs. 3500 will be taken into account for bonus calculation.
d) If bonus is 10% and the salary to calculate bonus is Rs. 3500, then the calculation will be as follows.
3500x12x10% = Rs. 4200.
This amount viz. Rs. 4200 is for full year attendance. If the attendace is 8 months out of 12 months, then the bonus entitled will be 4200x8/12= 2800.
Abbas.P.S
From India, Bangalore
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Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf
Bonus-amendment _206.doc