Dear Dignitaries, Bonus ceiling limit amended (Basic Wages) from 10,000 Rs to 21,000 Rs . Please refer here with enclosed Gazette notification for the same. With regards, Nanjegowda 9945282846
From India, Bangalore
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106From India, Bangalore
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HI, i am pursuing mba hr. my interest area is HR & Administration. Therefore which other courses are necessary for improve the importance of my career as HR
From India, undefined
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From India, undefined
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Is there a second page to the attachment ? There is a reference to a proviso / explanation at the end of the section ....
From India, Mumbai
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From India, Mumbai
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Dear Leader’s , Attached full version of Bonus notification for your reference.
From India, Bangalore
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From India, Bangalore
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Dear Sir,
Thank you so much for your assistance. I have a query regarding the recent notification.
Currently, my client company pays a maximum bonus of 20% on Rs. 3500 per month. However, post the recent amendment, my client is now required to pay 8.33% on Rs. 7000 per month. My question is whether my client needs to make any additional payment or if the bonus amount already paid is sufficient, provided it meets the minimum requirement of 8.33%.
Thank you for your help.
Mukundh
Advocate
9840503630
From India, Chennai
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Thank you so much for your assistance. I have a query regarding the recent notification.
Currently, my client company pays a maximum bonus of 20% on Rs. 3500 per month. However, post the recent amendment, my client is now required to pay 8.33% on Rs. 7000 per month. My question is whether my client needs to make any additional payment or if the bonus amount already paid is sufficient, provided it meets the minimum requirement of 8.33%.
Thank you for your help.
Mukundh
Advocate
9840503630
From India, Chennai
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Mukund,
There is some confusion here. Two things have changed:
1. Eligibility for the bonus was for those who had a salary of up to ₹10,000 per month, now it's for all those with a salary of up to ₹21,000 per month.
2. The bonus was computed on a salary of up to ₹3,500 per month, now it is computed on ₹7,000 per month.
So, if your company was paying 20% of 3500 x 12, now it will have to pay 20% of 7000 x 12. The bonus rate is subject to the availability of enough profit (eligible surplus).
From India, Mumbai
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There is some confusion here. Two things have changed:
1. Eligibility for the bonus was for those who had a salary of up to ₹10,000 per month, now it's for all those with a salary of up to ₹21,000 per month.
2. The bonus was computed on a salary of up to ₹3,500 per month, now it is computed on ₹7,000 per month.
So, if your company was paying 20% of 3500 x 12, now it will have to pay 20% of 7000 x 12. The bonus rate is subject to the availability of enough profit (eligible surplus).
From India, Mumbai
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There are two concepts in the Bonus Act, namely 'allocable surplus' and 'available surplus.' The act provides a method to calculate these surpluses. The bonus is to be paid at a rate (percentage of salary) determined by the allocable surplus and any carry forward. In the event of a lack of allocable surplus, a minimum bonus of 8.33% must be paid. It is essential to study the act thoroughly or seek guidance from professionals such as accountants or auditors.
From India, Pune
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From India, Pune
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Dear Advocatemukundh,
There should not be any confusion. If you have declared that you are going to pay your employees a 20% bonus, i.e., the maximum bonus admissible, then obviously you have to pay them DOUBLE the amount (less than what has already been paid).
In case you have not declared anything in percentage terms but just an amount, in that case, you have already paid more than the new minimum statutory requirement. It totally depends on HOW the agreement WAS WORDED. As a lawyer, you must be aware of the importance of the wordings and terms used in any legal document.
Warm regards.
From India, Delhi
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There should not be any confusion. If you have declared that you are going to pay your employees a 20% bonus, i.e., the maximum bonus admissible, then obviously you have to pay them DOUBLE the amount (less than what has already been paid).
In case you have not declared anything in percentage terms but just an amount, in that case, you have already paid more than the new minimum statutory requirement. It totally depends on HOW the agreement WAS WORDED. As a lawyer, you must be aware of the importance of the wordings and terms used in any legal document.
Warm regards.
From India, Delhi
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As per my knowledge, to see the notification, Bonus is calculated on the minimum wage of the state or $7000, whichever is higher. However, some people are confusing, and I am not convinced with them. Therefore, I want to clear some queries:
1. Suppose in 2014, the minimum wage in Haryana was $5348. How is the bonus calculated, either on $5348 or $7000?
2. Suppose in 2014, the minimum wage in Delhi was $8903. How is the bonus calculated, either on $8903 or $7000?
I need expert advice.
From India, Mumbai
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1. Suppose in 2014, the minimum wage in Haryana was $5348. How is the bonus calculated, either on $5348 or $7000?
2. Suppose in 2014, the minimum wage in Delhi was $8903. How is the bonus calculated, either on $8903 or $7000?
I need expert advice.
From India, Mumbai
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Dear Mr. Mukund,
Your company has already paid a 20% bonus. If there is still a surplus calculated as per the provisions under the Payment of Bonus Act, you only need to make payment of the differential amount. If it turns out to be 8.33%, then nothing further is payable. However, if the calculations indicate that an additional bonus amount is available, then the actual percentage should be paid.
I want to emphasize that although you have paid 20%, it is not mandatory to maintain the same rate.
Regards,
RDS Yadav
Labour Law Adviser
From India, Delhi
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Your company has already paid a 20% bonus. If there is still a surplus calculated as per the provisions under the Payment of Bonus Act, you only need to make payment of the differential amount. If it turns out to be 8.33%, then nothing further is payable. However, if the calculations indicate that an additional bonus amount is available, then the actual percentage should be paid.
I want to emphasize that although you have paid 20%, it is not mandatory to maintain the same rate.
Regards,
RDS Yadav
Labour Law Adviser
From India, Delhi
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Payment of Gratuity Amendment Bill 2010.pdf