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The bonus is a reward that is paid to an employee for his work dedication towards the organization. The basic objective to give the bonus is to share the profit earned by the organization amongst the employees and staff members.The payment of bonus act applies to the whole of India. The Provision of this act applies to the following factories / establishments / companies:-
The factory defined under clause section 2 of the factories act 1948.
Every establishment in which 20 or more persons employed on any day during an accounting year.
The act also applies to public sectors in some cases.
Part-time employees also included.
Previously, the maximum bonus payable was 20% of Rs 3500 per month. The minimum bonus payment was capped at 8.33% of Rs 3500 per month or Rs 100, whichever is higher. The calculation ceiling of Rs 3500 is currently doubled to Rs 7000 per month “or the minimum wage for the scheduled employment, as fixed by the appropriate Government” (whichever is higher). Therefore, the cost associated with bonus payments could be double, based on the organization’s performance.
From India
The factory defined under clause section 2 of the factories act 1948.
Every establishment in which 20 or more persons employed on any day during an accounting year.
The act also applies to public sectors in some cases.
Part-time employees also included.
Previously, the maximum bonus payable was 20% of Rs 3500 per month. The minimum bonus payment was capped at 8.33% of Rs 3500 per month or Rs 100, whichever is higher. The calculation ceiling of Rs 3500 is currently doubled to Rs 7000 per month “or the minimum wage for the scheduled employment, as fixed by the appropriate Government” (whichever is higher). Therefore, the cost associated with bonus payments could be double, based on the organization’s performance.
From India
Dear Mr. Vikas and Mr. KM,
Any such unpaid dues including Bonus amount is earned " wages" has to be paid by employer within eight months from the close of accounting year ,as per Sec.19(b)of Payment of Bonus Act.Otherwise the non payment of bonus will be treated as non payment of wages, in that situation, employer is liable to penalty under Payment of WAGES Act.
Learned consultant KM has different opinion. Kindly re- explain your opinion above for sake of understanding your view points.
Regds,
RDS Yadav
Director,Future Instt. of Engg. and Management Technology
and
Advisor,
NAVTARANG HR SERVICES
Any such unpaid dues including Bonus amount is earned " wages" has to be paid by employer within eight months from the close of accounting year ,as per Sec.19(b)of Payment of Bonus Act.Otherwise the non payment of bonus will be treated as non payment of wages, in that situation, employer is liable to penalty under Payment of WAGES Act.
Learned consultant KM has different opinion. Kindly re- explain your opinion above for sake of understanding your view points.
Regds,
RDS Yadav
Director,Future Instt. of Engg. and Management Technology
and
Advisor,
NAVTARANG HR SERVICES
As explained by our learned members, Bonus has to be paid after the completion of the financial year with one condition that Bonus has to be paid before completion of eight months from the close of financial year. (That is before 30.11.2019, to say). It is left to you to pay the accrued bonus in installments but not later than eight months.
From India, New Delhi
From India, New Delhi
Hi sir, CAN YOU HELP ME IN FORMING A BONUS POLICY FOR MY COMPANY. MY COMPANY IS PRIVATED LIMITED. I JUST WANT TO KNOW WHAT GENERAL NORM AND CONDITIONS A COMPANY FOLLOWS
From India
From India
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Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf