Dear Seniors,
One of the employees has only worked for 41 days in the financial year 2015-16. After working for 41 days, including weekly offs, he resigned. Please suggest whether he is eligible for a 1-month bonus, a 2-month bonus, or the full amount of 7000/-.
Regards,
Anil Jha
From India, Gurgaon
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1One of the employees has only worked for 41 days in the financial year 2015-16. After working for 41 days, including weekly offs, he resigned. Please suggest whether he is eligible for a 1-month bonus, a 2-month bonus, or the full amount of 7000/-.
Regards,
Anil Jha
From India, Gurgaon
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Please find the extract of the act. Follow the same.
Section 8 in The Payment of Bonus Act, 1965
8. 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 thirty working days in that year.
From India, Chennai
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Section 8 in The Payment of Bonus Act, 1965
8. 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 thirty working days in that year.
From India, Chennai
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Dear Anil,
As per the provisions of the Payment of Bonus Act, he is entitled to a bonus based on the number of working days in a particular financial year. However, considering his earnings are less than 21000 PM, he will be paid a bonus pro rata at 7000 PM for the specific days only.
Thanks
From India
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As per the provisions of the Payment of Bonus Act, he is entitled to a bonus based on the number of working days in a particular financial year. However, considering his earnings are less than 21000 PM, he will be paid a bonus pro rata at 7000 PM for the specific days only.
Thanks
From India
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Dear Anil,
As per Section 8 of the Bonus Act, if an employee has worked for 30 working days, they can be eligible for a bonus in that year. Out of 41 days, you can count the number of working days, and if it is 30 or more, then the employee is eligible for a bonus. You can then pay them a bonus based on their earnings.
Thank you.
From India, Pune
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As per Section 8 of the Bonus Act, if an employee has worked for 30 working days, they can be eligible for a bonus in that year. Out of 41 days, you can count the number of working days, and if it is 30 or more, then the employee is eligible for a bonus. You can then pay them a bonus based on their earnings.
Thank you.
From India, Pune
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Dear All,
The employee salary is as follows:
- 16000 basic
- 2000 Conveyance allowances, total 18000/- PM
However, our state minimum wage is 7980/-. As the employee has worked only 41 days, please tell me how the bonus will be calculated in this situation.
From India, Gurgaon
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The employee salary is as follows:
- 16000 basic
- 2000 Conveyance allowances, total 18000/- PM
However, our state minimum wage is 7980/-. As the employee has worked only 41 days, please tell me how the bonus will be calculated in this situation.
From India, Gurgaon
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Please note if the basic is Rs. 16,000/- per month, the bonus will be calculated as under:
Suppose for the 1st full month - salary earned Rs. 16,000/- Next month (41-30=11) - salary earned Rs. 5,867/- Total Rs. 21,867/- Bonus = Earned wage x %age of bonus (Say 21,867 * 8.33% i.e. minimum = Rs. 1,822/-) (Percentage depends upon the allocable surplus for the year).
But please make sure that the person concerned must have worked for at least 30 days in the accounting year. The minimum wages of your State do not matter in this case. According to the notification where the minimum wage in any State is less than Rs. 7,000/- per month, the wage for bonus purpose will be taken into account at Rs. 7,000/- per month and in other cases Rs. 7,000/- or actual wage, whichever is higher.
P. K. Sharma
From India, Delhi
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Suppose for the 1st full month - salary earned Rs. 16,000/- Next month (41-30=11) - salary earned Rs. 5,867/- Total Rs. 21,867/- Bonus = Earned wage x %age of bonus (Say 21,867 * 8.33% i.e. minimum = Rs. 1,822/-) (Percentage depends upon the allocable surplus for the year).
But please make sure that the person concerned must have worked for at least 30 days in the accounting year. The minimum wages of your State do not matter in this case. According to the notification where the minimum wage in any State is less than Rs. 7,000/- per month, the wage for bonus purpose will be taken into account at Rs. 7,000/- per month and in other cases Rs. 7,000/- or actual wage, whichever is higher.
P. K. Sharma
From India, Delhi
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Sorry, the above working is wrong.
Bonus is to be paid on actual bonus subject to a ceiling of ₹7000 or minimum wages, whichever is higher. Since minimum wages are higher, that will be taken into account.
Please compute his total basic for the entire period of his working with you, computed at minimum wages level, and give a bonus of 8.33% of that amount. However, if the allocable surplus is higher (effectively meaning you are highly profitable), you will need to pay at 20%, not 8.33%. This will then need to be paid to the employee at the time of disbursement of the bonus next year. Most people don't bother with that actually.
From India, Mumbai
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Bonus is to be paid on actual bonus subject to a ceiling of ₹7000 or minimum wages, whichever is higher. Since minimum wages are higher, that will be taken into account.
Please compute his total basic for the entire period of his working with you, computed at minimum wages level, and give a bonus of 8.33% of that amount. However, if the allocable surplus is higher (effectively meaning you are highly profitable), you will need to pay at 20%, not 8.33%. This will then need to be paid to the employee at the time of disbursement of the bonus next year. Most people don't bother with that actually.
From India, Mumbai
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sir.. i am bit confused weather bonus will be calculate on earned wages*8.33% or on our state minimum wages as it is higher then ceiling limit 7000
From India, Gurgaon
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From India, Gurgaon
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It will be computed on state minimum wages * 8.33% That is provided for in the new bonus act passed by Modi government
From India, Mumbai
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From India, Mumbai
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The Payment Of Bonus Act 1965-Update-02- 01.01.16-Wage - 21K- Min Bons 7K-01.04.14.pdf
Amendment to Payment of Bonus Act 2015.jpg