sir, I have joined a pvt ltd co on 7th of july-2014 ,the co says that I am not entitled for bonus . I have completed 1 year and 3 months and still in service pl clearify whether I am entitled or not
From India, New Delhi
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From India, New Delhi
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Sir, Pl clearify whether I am entitled or not I have completed 1 year and 3 months and I am still working there
From India, New Delhi
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From India, New Delhi
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Bonus act applies for any employee whose salary (basic + DA) is less than ₹10,000. If your salary is above that, you are not eligible for statutory bonus.
If you are eligible, then you can get a bonus of 8.33% to 20% of annual salary as a bonus subject to a salary ceiling of ₹3500 per month. This means that if your salary exceeds ₹3500, the bonus would be computed only on ₹3500 per month.
Bonus is payable for employees who have worked for more than 100 days in the previous year.
From India, Mumbai
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2633If you are eligible, then you can get a bonus of 8.33% to 20% of annual salary as a bonus subject to a salary ceiling of ₹3500 per month. This means that if your salary exceeds ₹3500, the bonus would be computed only on ₹3500 per month.
Bonus is payable for employees who have worked for more than 100 days in the previous year.
From India, Mumbai
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Dear Saswata Banerjee,
In the Payment of Bonus Act, 1965, it is mentioned that "An employee will be entitled only when he has worked for 30 working days in that year" and "Basic+DA <=10,000, they are eligible".
Regards,
B. Nagendra
nagendrabura@gmail.com
From India, Hyderabad
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In the Payment of Bonus Act, 1965, it is mentioned that "An employee will be entitled only when he has worked for 30 working days in that year" and "Basic+DA <=10,000, they are eligible".
Regards,
B. Nagendra
nagendrabura@gmail.com
From India, Hyderabad
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Every organization has its own policy for the payment of bonuses. In general, the payment of bonuses is guided by the Bonus Act, and our friends have cited the conditions of the Bonus Act. However, a few organizations may allow incentive bonuses, profit-sharing bonuses, etc. Therefore, please contact your HR Department and learn about the bonus policy of your organization.
From India, Bangalore
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From India, Bangalore
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Dear Mr. Jitenderdhar,
The Payment of Bonus Act states that if an employee's basic salary does not exceed Rs 10,000/- as per the latest amendment, the employee is entitled to a bonus at 8.33% on a wage ceiling of Rs 3,500/- provided that they have worked in the company for not less than 30 days in a financial year starting from April 1st to March 31st of the preceding year. However, a newly set-up organization/company has a three-year infancy protection under this act, and such a company is not required to pay bonuses to its employees if it does not earn a profit within that period. Nevertheless, upon completing five years, the company must pay a minimum bonus of 8.33% to its employees regardless of whether it is earning a profit or not.
Therefore, if your company has infancy protection under this act and is not making a profit, you cannot claim a bonus as a matter of right. However, if other employees are receiving bonuses, you can approach your HR Department and request to be given a bonus on par with them to resolve the matter amicably. Alternatively, you can submit an application to the Deputy Commissioner of Labor or any labor department officials within whose jurisdiction your company falls to obtain the bonus under the Payment of Bonus Act and the related rules.
Regards,
NVRao
Tanuku,
Andhra Pradesh
From India, Hyderabad
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The Payment of Bonus Act states that if an employee's basic salary does not exceed Rs 10,000/- as per the latest amendment, the employee is entitled to a bonus at 8.33% on a wage ceiling of Rs 3,500/- provided that they have worked in the company for not less than 30 days in a financial year starting from April 1st to March 31st of the preceding year. However, a newly set-up organization/company has a three-year infancy protection under this act, and such a company is not required to pay bonuses to its employees if it does not earn a profit within that period. Nevertheless, upon completing five years, the company must pay a minimum bonus of 8.33% to its employees regardless of whether it is earning a profit or not.
Therefore, if your company has infancy protection under this act and is not making a profit, you cannot claim a bonus as a matter of right. However, if other employees are receiving bonuses, you can approach your HR Department and request to be given a bonus on par with them to resolve the matter amicably. Alternatively, you can submit an application to the Deputy Commissioner of Labor or any labor department officials within whose jurisdiction your company falls to obtain the bonus under the Payment of Bonus Act and the related rules.
Regards,
NVRao
Tanuku,
Andhra Pradesh
From India, Hyderabad
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Hi,
First of all, I would like to know if there is a bonus amount paid to other employees and not paid to you only because you are not eligible for it.
As far as bonus applicability is concerned, there are already a few comments which clarify your eligibility. You must have worked at least 30 days in a bonus calculating year, i.e., April to March. Secondly, you must be getting 'wages' as per the wages defined under The Payment of Bonus Act, 1965, to become eligible to receive the bonus. If your company has declared a certain percentage after computing profit and loss to be distributed as a bonus, you will, of course, be eligible to receive the bonus.
So, please check these conditions with yourself. Perhaps, you will get the answer.
Regards,
From India, Sholapur
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First of all, I would like to know if there is a bonus amount paid to other employees and not paid to you only because you are not eligible for it.
As far as bonus applicability is concerned, there are already a few comments which clarify your eligibility. You must have worked at least 30 days in a bonus calculating year, i.e., April to March. Secondly, you must be getting 'wages' as per the wages defined under The Payment of Bonus Act, 1965, to become eligible to receive the bonus. If your company has declared a certain percentage after computing profit and loss to be distributed as a bonus, you will, of course, be eligible to receive the bonus.
So, please check these conditions with yourself. Perhaps, you will get the answer.
Regards,
From India, Sholapur
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Dear NV Rao Sir,
Some of our members have brought out the general provisions of the Act for the entitlement of bonus but missed the provisions contained in Section-15 of the Act, which you have explained very nicely to which I agree. One thing was coming to my mind as to whether at the first instance we shouldn't have examined the applicability of the Act to the particular establishment to which the query of Sh Jitenderdhar relates. Section 1(3) of the Act clearly prescribes that the Act shall be made applicable to:
a) every factory; (b) every other establishment in which twenty or more persons are employed on any day during an accounting year or (c) in special cases where the appropriate govt, notifies that the provisions of the Act shall be made applicable to any establishment or class of establishments employing less than 20.
I would like members to offer their comments.
BS Kalsi
From India, Mumbai
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Some of our members have brought out the general provisions of the Act for the entitlement of bonus but missed the provisions contained in Section-15 of the Act, which you have explained very nicely to which I agree. One thing was coming to my mind as to whether at the first instance we shouldn't have examined the applicability of the Act to the particular establishment to which the query of Sh Jitenderdhar relates. Section 1(3) of the Act clearly prescribes that the Act shall be made applicable to:
a) every factory; (b) every other establishment in which twenty or more persons are employed on any day during an accounting year or (c) in special cases where the appropriate govt, notifies that the provisions of the Act shall be made applicable to any establishment or class of establishments employing less than 20.
I would like members to offer their comments.
BS Kalsi
From India, Mumbai
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Dear Friends,
Mr. Jitenderdhar, in his query, has not stated his position and the nature of his company. Furthermore, it appears he has not ascertained the issues related to the Payment of Bonus. In the absence of such information, all of us are providing general information.
From India, Bangalore
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Mr. Jitenderdhar, in his query, has not stated his position and the nature of his company. Furthermore, it appears he has not ascertained the issues related to the Payment of Bonus. In the absence of such information, all of us are providing general information.
From India, Bangalore
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