Good Morning to All HR Floks, i am new to this cite hr, as per my knowedge the bonus contribution is 8.33%..and coming to maximum how much can pay by employer. KSK
From India, Hyderabad
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From India, Hyderabad
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Hi,
Bonus to be paid under the Payment of Bonus Act, 1965 is to be calculated as follows:
1. It depends on the percentage that your company wants to give as a bonus to its employees. The minimum bonus is 8.33% of the basic salary earned during the accounting year, and the maximum is 20% under the Payment of Bonus Act, 1965.
2. Eligibility: Bonus under the Payment of Bonus Act, 1965 is required to be given to employees whose basic salary is less than Rs. 3500.00 per month during the accounting year for which the bonus is to be paid.
3. Payment is to be made on the register prescribed under the act.
4. The return of payment of bonus is to be submitted to the ALC or other designated authority under the act within 30 days of the payment of the bonus to employees.
From India, New Delhi
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115Bonus to be paid under the Payment of Bonus Act, 1965 is to be calculated as follows:
1. It depends on the percentage that your company wants to give as a bonus to its employees. The minimum bonus is 8.33% of the basic salary earned during the accounting year, and the maximum is 20% under the Payment of Bonus Act, 1965.
2. Eligibility: Bonus under the Payment of Bonus Act, 1965 is required to be given to employees whose basic salary is less than Rs. 3500.00 per month during the accounting year for which the bonus is to be paid.
3. Payment is to be made on the register prescribed under the act.
4. The return of payment of bonus is to be submitted to the ALC or other designated authority under the act within 30 days of the payment of the bonus to employees.
From India, New Delhi
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Dear friends,
A bonus is eligible for those who draw a salary of Rs. 10,000 or below. According to the Bonus Act, the maximum bonus is 20% (in percentage) and Rs. 8,4000 (in amount). Additionally, based on the will and wish of the employer or an agreement between the employer and employee, some additional amount can be paid, which is called ex gratia.
Abbas.P.S
From India, Bangalore
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A bonus is eligible for those who draw a salary of Rs. 10,000 or below. According to the Bonus Act, the maximum bonus is 20% (in percentage) and Rs. 8,4000 (in amount). Additionally, based on the will and wish of the employer or an agreement between the employer and employee, some additional amount can be paid, which is called ex gratia.
Abbas.P.S
From India, Bangalore
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Hi Bharat,
As mentioned above, the minimum bonus that can be given is 8.33% and the maximum is 20% as per the bonus act. It is possible to give above 20% if the employee wishes, but according to the act, 20% is the maximum limit. However, it is not permissible to give less than 8.33%. In union-based companies or in negotiations between employees and employers, it may be possible to discuss amounts above 8.33%.
Thank you,
Satyaak
From India, Madras
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As mentioned above, the minimum bonus that can be given is 8.33% and the maximum is 20% as per the bonus act. It is possible to give above 20% if the employee wishes, but according to the act, 20% is the maximum limit. However, it is not permissible to give less than 8.33%. In union-based companies or in negotiations between employees and employers, it may be possible to discuss amounts above 8.33%.
Thank you,
Satyaak
From India, Madras
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Hi Bharat,
I think you are talking about Statutory Bonus; be specific when you put any query. See my remarks below:
1. Employees drawing a salary (Basic + DA) of Rs. 10,000 per month and below, who have worked for more than 30 days, are eligible for the bonus.
2. Bonus can be given starting from 8.33% up to a maximum of 20%.
3. The ceiling is Rs. 3500 (which means that if Basic + DA is greater than or equal to 3500, employees are eligible to receive 3500. If Basic + DA is less than 3500, then the actual Basic + DA is payable).
4. If an employee is absent during the year (e.g., on leave without salary), the bonus is proportionately reduced.
5. The minimum bonus payable is Rs. 100.
Best regards,
Sunita Dhoundiyal
From India, Delhi
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I think you are talking about Statutory Bonus; be specific when you put any query. See my remarks below:
1. Employees drawing a salary (Basic + DA) of Rs. 10,000 per month and below, who have worked for more than 30 days, are eligible for the bonus.
2. Bonus can be given starting from 8.33% up to a maximum of 20%.
3. The ceiling is Rs. 3500 (which means that if Basic + DA is greater than or equal to 3500, employees are eligible to receive 3500. If Basic + DA is less than 3500, then the actual Basic + DA is payable).
4. If an employee is absent during the year (e.g., on leave without salary), the bonus is proportionately reduced.
5. The minimum bonus payable is Rs. 100.
Best regards,
Sunita Dhoundiyal
From India, Delhi
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Dear Sunita Dhoundiyal ji,
Leave without salary... Is it a must that it should be deducted anyway? If, despite the loss of pay, the total wages earned during the year are not falling short of Rs. 3500 on average, is it not that the total has to be paid? Will you please clarify. - T. Kishtaiah
From India, Hyderabad
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Leave without salary... Is it a must that it should be deducted anyway? If, despite the loss of pay, the total wages earned during the year are not falling short of Rs. 3500 on average, is it not that the total has to be paid? Will you please clarify. - T. Kishtaiah
From India, Hyderabad
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Dear Bharat,
If we are talking about Statutory Bonus, then the Employer can pay up to 20% of the salary (Sec 11 of the Payment of Bonus Act 1965).
Explanation: The maximum bonus is (3500*12)*20% = Rs. 8400/-. If the Employer wants to pay more than 20%, then it will go into ex-gratia payment (A sum of money paid by the employer when there was no obligation or liability to pay it).
Good Morning to All HR Folks,
I am new to this site HR. As per my knowledge, the bonus contribution is 8.33%. Coming to the maximum amount that can be paid by the employer.
KSK
From India, Kota
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If we are talking about Statutory Bonus, then the Employer can pay up to 20% of the salary (Sec 11 of the Payment of Bonus Act 1965).
Explanation: The maximum bonus is (3500*12)*20% = Rs. 8400/-. If the Employer wants to pay more than 20%, then it will go into ex-gratia payment (A sum of money paid by the employer when there was no obligation or liability to pay it).
Good Morning to All HR Folks,
I am new to this site HR. As per my knowledge, the bonus contribution is 8.33%. Coming to the maximum amount that can be paid by the employer.
KSK
From India, Kota
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