My payment 897 wages X 26 days = gross payment 23,322.00. Is a bonus applicable or not? (Rs. 21,000.00 X 8.33% = 1,749.30 / 26 = 67.28 per day).
Is it possible to receive a bonus at a salary of 21,000.00? Please suggest/guide me.
From India, Bangalore
Acknowledge(0)
Amend(0)
Is it possible to receive a bonus at a salary of 21,000.00? Please suggest/guide me.
From India, Bangalore
Acknowledge(0)Amend(0)
If the earned gross salary is more than Rs. 21,000, no bonus shall become payable to the employee. But if any part of the year had accounted for wages of Rs. 21,000 or less, the earned salary for that period will qualify for a bonus. In respect of employees with a salary of more than Rs. 21,000, there is no need to pay a bonus, treating it as Rs. 21,000. Moreover, even in respect of employees within the bonus wage ceiling limit of Rs. 21,000, you can pay a bonus calculated on the basis of a salary of Rs. 7,000 or statutory minimum wages, whichever is higher.
Simply, an employee whose salary is Rs. 21,001 need not be given a bonus. In respect of an employee whose salary is Rs. 21,000, you should pay a bonus. The bonus need not be calculated on Rs. 21,000 but it can be capped at 8.33% of Rs. 7,000 for each month. If the statutory wages fixed by the government are, say, Rs. 12,000, then you should calculate the bonus on Rs. 12,000 as if their wage is Rs. 12,000 per month.
From India, Kannur
Acknowledge(0)Amend(0)
4761Simply, an employee whose salary is Rs. 21,001 need not be given a bonus. In respect of an employee whose salary is Rs. 21,000, you should pay a bonus. The bonus need not be calculated on Rs. 21,000 but it can be capped at 8.33% of Rs. 7,000 for each month. If the statutory wages fixed by the government are, say, Rs. 12,000, then you should calculate the bonus on Rs. 12,000 as if their wage is Rs. 12,000 per month.
From India, Kannur
Acknowledge(0)Amend(0)
Every employee who is drawing a salary/wages (basic + DA) up to Rs. 21,000/- per month and who has worked for a minimum period of 30 days in a year is entitled to be paid a bonus as per the Payment of Bonus Act.
As per the Act, the bonus amount is paid at a rate of 8.33% to 20% of the ceiling limit - Rs. 7,000/- or the minimum wages (basic + D.A.), whichever is higher.
From India, Thane
Acknowledge(0)Amend(0)
As per the Act, the bonus amount is paid at a rate of 8.33% to 20% of the ceiling limit - Rs. 7,000/- or the minimum wages (basic + D.A.), whichever is higher.
From India, Thane
Acknowledge(0)Amend(0)
Though statutory bonus is not payable for wages beyond Rs. 21,000/- as per the Payment of Bonus Act 1965, there are many organizations that protect the same amount or pay a different amount as an incentive to other employees. After all, everybody has contributed and should get their due share of the cake.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Register and Log In.
PAYMENT OF WAGES ACT 2009.doc