Dear Seniors,
Please help me with the process of submitting a letter or covering letter to the labor department regarding the issuance of bonuses to employees of our company.
Please reply to me soon.
Thanks and regards,
Shekar Valeru
From India, Hyderabad
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7Please help me with the process of submitting a letter or covering letter to the labor department regarding the issuance of bonuses to employees of our company.
Please reply to me soon.
Thanks and regards,
Shekar Valeru
From India, Hyderabad
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To, The Asst. Labour Commissioner, Labour Office, Bungalow No.5, Pune Mumbai Road, Shivaji Nagar, Pune-411005.
Subject: Submission of Annual Return of Bonus
Dear Sir,
Please find enclosed herewith a return in Form D for the accounting year 01.04.2012 to 31.03.2013, duly completed in all respects and signed by us. This is for your information and record, please.
Kindly acknowledge the receipt.
Thank you,
Yours faithfully,
For COMPANY NAME
AUTHORIZED SIGN
Enclosure: a/a.
From India, Chakan
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Subject: Submission of Annual Return of Bonus
Dear Sir,
Please find enclosed herewith a return in Form D for the accounting year 01.04.2012 to 31.03.2013, duly completed in all respects and signed by us. This is for your information and record, please.
Kindly acknowledge the receipt.
Thank you,
Yours faithfully,
For COMPANY NAME
AUTHORIZED SIGN
Enclosure: a/a.
From India, Chakan
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Dear Sir If you are going to give Bonus to your workmen then please enter into a18(1)settlement and a copy shall be forwarded to Labour Officer. Regards C Manimaran Coimbatore
From India, Bangalore
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From India, Bangalore
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(Fact Checked)-The information provided in the user reply is correct. It is advisable to enter into a settlement under Section 18(1) of the Industrial Disputes Act, 1947, and share a copy with the Labour Officer. Thank you for sharing your input. (1 Acknowledge point)
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Dear Rahul Vinayak Ji,
Thank you very much for your reply. I am new to this company and do not have much information about the bonus structure. Could you please address the following doubts:
1) Who is eligible for the bonus and what criteria determine the bonus allocation?
2) What are the minimum and maximum bonus amounts, and how is the bonus calculated on a monthly basis? For example, if an employee has worked for 5 months, how much bonus can they expect?
3) Should the bonus be calculated based on the basic salary, gross salary, or CTC? Additionally, what is the salary threshold for bonus eligibility?
4) When is the appropriate time to distribute bonuses? Is it after the completion of the fiscal year?
5) Are there specific rules governing bonus distribution in the company? For instance, can a company that was established 2 years ago provide bonuses to its employees?
6) What documentation is required for bonus distribution, and which documents need to be submitted to the labor office along with a covering letter (as provided above)? Also, what is the deadline for submitting these documents to the labor office?
7) Lastly, when can I access soft or hard copies of books related to the generalist profile, such as bonus regulations, PF and PT rules, salary guidelines, labor laws, and salary payslip distribution rules, to enhance my knowledge?
If possible, please respond as soon as possible. I need to address these matters at the office tomorrow.
Thank you in advance.
Shekar Valeru
Hyderabad, AP
From India, Hyderabad
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Thank you very much for your reply. I am new to this company and do not have much information about the bonus structure. Could you please address the following doubts:
1) Who is eligible for the bonus and what criteria determine the bonus allocation?
2) What are the minimum and maximum bonus amounts, and how is the bonus calculated on a monthly basis? For example, if an employee has worked for 5 months, how much bonus can they expect?
3) Should the bonus be calculated based on the basic salary, gross salary, or CTC? Additionally, what is the salary threshold for bonus eligibility?
4) When is the appropriate time to distribute bonuses? Is it after the completion of the fiscal year?
5) Are there specific rules governing bonus distribution in the company? For instance, can a company that was established 2 years ago provide bonuses to its employees?
6) What documentation is required for bonus distribution, and which documents need to be submitted to the labor office along with a covering letter (as provided above)? Also, what is the deadline for submitting these documents to the labor office?
7) Lastly, when can I access soft or hard copies of books related to the generalist profile, such as bonus regulations, PF and PT rules, salary guidelines, labor laws, and salary payslip distribution rules, to enhance my knowledge?
If possible, please respond as soon as possible. I need to address these matters at the office tomorrow.
Thank you in advance.
Shekar Valeru
Hyderabad, AP
From India, Hyderabad
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(Fact Check Failed/Partial)-The reply provided contains multiple queries related to bonus payments, timing, eligibility criteria, and document submission. It also seeks guidance on HR-related topics. It would be beneficial to provide a comprehensive response covering all these aspects.
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Dear Shekar,
Payment of bonus is actually an accounting function. The gross profit has to be calculated as per the provisions of this Act to determine the available surplus, i.e., the amount available for disbursement of bonus for the year. The percentage of bonus is calculated by relating the year's bonus wages (Basic + DA) to it. Additionally, there are provisions for set on and set off. All these requirements are accounting functions. Currently, an employee drawing Basic + DA of less than Rs. 10,000 per month is entitled to receive a bonus provided they have worked for 30+ days in the financial year for which the bonus is to be paid. Bonuses are to be paid within 8 months of the close of the financial year.
For other requirements, please conduct research and development on search engines for yourself.
Shrikant Prabhudesai
shrikant@classiclabour.com
From India, Mumbai
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Payment of bonus is actually an accounting function. The gross profit has to be calculated as per the provisions of this Act to determine the available surplus, i.e., the amount available for disbursement of bonus for the year. The percentage of bonus is calculated by relating the year's bonus wages (Basic + DA) to it. Additionally, there are provisions for set on and set off. All these requirements are accounting functions. Currently, an employee drawing Basic + DA of less than Rs. 10,000 per month is entitled to receive a bonus provided they have worked for 30+ days in the financial year for which the bonus is to be paid. Bonuses are to be paid within 8 months of the close of the financial year.
For other requirements, please conduct research and development on search engines for yourself.
Shrikant Prabhudesai
shrikant@classiclabour.com
From India, Mumbai
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(Fact Checked)-The user provided an accurate response regarding the calculation and disbursement of bonus as per the Payment of Bonus Act. The information shared aligns with the provisions of the Act. (1 Acknowledge point)
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Hi, Good Morning my dear Seniors,
This is Siva from Hyderabad. I am working as an HR officer for the past 3 years. I want to know about the bell curve method. What is the bell curve? How will it affect the PF system? How do we implement the bell curve? Please help me with this. Our new president wants to implement this bell curve method.
Thank you.
From India, Vijayawada
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This is Siva from Hyderabad. I am working as an HR officer for the past 3 years. I want to know about the bell curve method. What is the bell curve? How will it affect the PF system? How do we implement the bell curve? Please help me with this. Our new president wants to implement this bell curve method.
Thank you.
From India, Vijayawada
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(Fact Check Failed/Partial)-The user's reply is incorrect. The "bell curve method" is a performance appraisal technique, not related to the PF system. It should be implemented carefully to avoid legal issues.
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Dear Shekhar,
Bonus payment is governed by "THE PAYMENT OF BONUS ACT, 1965" for calculation of bonus. Below are a few important points to consider:
1. If your establishment is not 5 years old and the balance sheet shows a loss, then your establishment is not entitled to bonus payment.
2. If your establishment's balance sheet shows a profit before 5 years, the establishment is entitled to bonus payment.
3. The rate of bonus ranges from 8.33% minimum to 20% maximum.
4. Any employee whose Basic + DA is less than 10,000 is eligible.
5. Eligibility for bonus - Every employee shall be entitled to be paid by their employer in an accounting year, bonus, following the provisions of this Act, provided they have worked in the establishment for not less than 30 working days in that year.
6. Bonus return is submitted to the labor department in form D, and bonus payment records are in form C.
For more details, you must go through the Act and restart this discussion again once.
Regards,
Manish
From India, Bangalore
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Bonus payment is governed by "THE PAYMENT OF BONUS ACT, 1965" for calculation of bonus. Below are a few important points to consider:
1. If your establishment is not 5 years old and the balance sheet shows a loss, then your establishment is not entitled to bonus payment.
2. If your establishment's balance sheet shows a profit before 5 years, the establishment is entitled to bonus payment.
3. The rate of bonus ranges from 8.33% minimum to 20% maximum.
4. Any employee whose Basic + DA is less than 10,000 is eligible.
5. Eligibility for bonus - Every employee shall be entitled to be paid by their employer in an accounting year, bonus, following the provisions of this Act, provided they have worked in the establishment for not less than 30 working days in that year.
6. Bonus return is submitted to the labor department in form D, and bonus payment records are in form C.
For more details, you must go through the Act and restart this discussion again once.
Regards,
Manish
From India, Bangalore
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(Fact Check Failed/Partial)-The user's reply is mostly correct. The Payment of Bonus Act, 1965 governs bonus payment. However, there is a small error regarding the eligibility criteria for bonus payment. The Act states that every employee who has worked for at least 30 working days is eligible, not based on Basic + DA salary limit. For further reference, please consult "The Payment of Bonus Act, 1965."
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Dear Shekhar,
Bonus Payment is governed by "THE PAYMENT OF BONUS ACT, 1965" for the calculation of bonus. Below are a few important points to consider:
1. If your establishment is not 5 years old and the balance sheet shows a loss, then your establishment is not entitled to bonus payment.
2. If the establishment's balance sheet shows a profit before 5 years, then the establishment is entitled to bonus payment.
3. The rate of Bonus is a minimum of 8.33% and a maximum of 20%.
4. Any employee whose Basic + DA is less than 10,000.
5. Eligibility for bonus - Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than 30 working days in that year.
6. Bonus return is submitted to the labor department in form D, and Bonus payment record in form C.
For more details, you must go through the Act and restart this discussion again once.
Regards,
Manish
Dear Manish Ji,
Thanks a lot, clearly understood. One more query that is, for example, if one company's 3-year balance sheet shows a loss and 2 years show a profit, is it eligible for paying bonuses to employees? Also, in one company, one person is earning 22,000 gross PM, and his basic is 12,000 (60% of the gross), and he worked for 9 months and left. Is he eligible or not? Is anyone with a basic + DA of more than 10,000 not eligible, or if he is not eligible, then is he eligible for anything other than the bonus? Please provide clarification and also, please send me how to do the salary partition like basic, DA, and HRA, etc.
Thanks in advance.
Sheka Valeru
From India, Hyderabad
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Bonus Payment is governed by "THE PAYMENT OF BONUS ACT, 1965" for the calculation of bonus. Below are a few important points to consider:
1. If your establishment is not 5 years old and the balance sheet shows a loss, then your establishment is not entitled to bonus payment.
2. If the establishment's balance sheet shows a profit before 5 years, then the establishment is entitled to bonus payment.
3. The rate of Bonus is a minimum of 8.33% and a maximum of 20%.
4. Any employee whose Basic + DA is less than 10,000.
5. Eligibility for bonus - Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than 30 working days in that year.
6. Bonus return is submitted to the labor department in form D, and Bonus payment record in form C.
For more details, you must go through the Act and restart this discussion again once.
Regards,
Manish
Dear Manish Ji,
Thanks a lot, clearly understood. One more query that is, for example, if one company's 3-year balance sheet shows a loss and 2 years show a profit, is it eligible for paying bonuses to employees? Also, in one company, one person is earning 22,000 gross PM, and his basic is 12,000 (60% of the gross), and he worked for 9 months and left. Is he eligible or not? Is anyone with a basic + DA of more than 10,000 not eligible, or if he is not eligible, then is he eligible for anything other than the bonus? Please provide clarification and also, please send me how to do the salary partition like basic, DA, and HRA, etc.
Thanks in advance.
Sheka Valeru
From India, Hyderabad
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-[The information provided in the user reply is correct and aligns with the Payment of Bonus Act, 1965. The responses address the eligibility criteria for bonus payment based on the establishment's profit or loss status, the rate of bonus, employee eligibility based on salary, and the submission of bonus returns to the labor department. The queries raised by the user are relevant to bonus eligibility scenarios and salary components.] (1 Acknowledge point)
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I worked for 5 Months and left the company. Shall I get bonus.Moreover to decrease the manpower they forced me to resign the job.
From India, Hyderabad
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From India, Hyderabad
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(Fact Check Failed/Partial)-The bonus entitlement typically depends on the company's policy and your employment duration. Resignation may affect eligibility. Check your company's bonus policy or consult with the labor department for clarity.
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Dear Valeru,
Thank you.
If a company is in a loss for the first 3 years and then makes a profit in the next two years, the company will be paid a bonus for those two years. If the company is profitable in the first two years and then incurs a loss, the company will be paid a bonus for 5 years. This means that when the company becomes profitable after 3 years, it will be paid. According to the Bonus Act of 1965, in section 16, special provisions apply to certain establishments.
Where an establishment is newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to be paid a bonus under this Act in accordance with the provisions of subsections (1A), (1B), and (1C). In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, bonus shall be payable only in the accounting year in which the employer derives a profit from such establishment.
For the sixth and seventh accounting years following the aforementioned year, the provisions of section 15 shall apply with certain modifications. If the Basic+DA exceeds 10,000, the individual is not entitled to a bonus, and the company may offer ex-gratia as an alternative. The calculation of the basic salary varies from company to company, but in the case of minimum wage, it should adhere to the minimum wage as per the grade.
For instance, if the Gross is 12,000/- and 60% of it amounts to 7,200 (Basic), and the minimum wage is 7,500, then the basic+DA should be 7,500.
If an individual has worked for 30 days in a financial year, they are entitled to a bonus with some exemptions as per the act.
Thank you.
Manish
From India, Bangalore
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Thank you.
If a company is in a loss for the first 3 years and then makes a profit in the next two years, the company will be paid a bonus for those two years. If the company is profitable in the first two years and then incurs a loss, the company will be paid a bonus for 5 years. This means that when the company becomes profitable after 3 years, it will be paid. According to the Bonus Act of 1965, in section 16, special provisions apply to certain establishments.
Where an establishment is newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to be paid a bonus under this Act in accordance with the provisions of subsections (1A), (1B), and (1C). In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, bonus shall be payable only in the accounting year in which the employer derives a profit from such establishment.
For the sixth and seventh accounting years following the aforementioned year, the provisions of section 15 shall apply with certain modifications. If the Basic+DA exceeds 10,000, the individual is not entitled to a bonus, and the company may offer ex-gratia as an alternative. The calculation of the basic salary varies from company to company, but in the case of minimum wage, it should adhere to the minimum wage as per the grade.
For instance, if the Gross is 12,000/- and 60% of it amounts to 7,200 (Basic), and the minimum wage is 7,500, then the basic+DA should be 7,500.
If an individual has worked for 30 days in a financial year, they are entitled to a bonus with some exemptions as per the act.
Thank you.
Manish
From India, Bangalore
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(Fact Check Failed/Partial)-The user's reply contains inaccuracies regarding the calculation of bonus entitlement. According to the Payment of Bonus Act, 1965, the criteria for bonus eligibility are based on different factors such as profit, basic salary, and days worked. Please ensure to review the Act for accurate information.
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(Fact Check Failed/Partial)-The information provided in the user's reply is incorrect.