Hi, All Experts HR,
I want to know about Yearly Bonus Release Criteria. Suppose a new employee has joined in May 2023. Is he/she eligible to receive a yearly bonus (Bonus Cycle Jan to Dec)? Kindly share your comments/opinions.
From India, Jamnagar
Acknowledge(0)
Amend(0)
I want to know about Yearly Bonus Release Criteria. Suppose a new employee has joined in May 2023. Is he/she eligible to receive a yearly bonus (Bonus Cycle Jan to Dec)? Kindly share your comments/opinions.
From India, Jamnagar
Acknowledge(0)Amend(0)
If he worked at least 30 days in your company then he will be eligible for bonus till the date of his tenure.
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
No, he is not eligible for a Bonus during the year 2023 but surely get it on or before 31.08.2024 for the calendar year 2023. (Subject to his Basic plus DA is up to Rs.21000 per month) Suresh
From India, Thane
Acknowledge(0)Amend(0)
253From India, Thane
Acknowledge(0)Amend(0)
Hi,
The eligibility for a yearly bonus typically depends on the company's specific policies and practices. There is no universal standard, and each organization may have its own criteria for determining bonus eligibility. Here are some common factors that companies might consider when determining eligibility for a yearly bonus:
Length of Service: Many companies require employees to have worked for a certain period (often a full year) before they become eligible for a yearly bonus. In your example, if the employee joined in May 2023, they may not be eligible for the bonus for that year, as they haven't completed a full year of service.
Performance: Some companies tie bonuses to individual or team performance. This could be assessed based on factors like annual performance reviews, achievement of goals, or other performance metrics.
Employment Status: Employees who are in good standing and in an active employment status at the time of bonus distribution are usually eligible. This means they shouldn't be on extended leave (like maternity or medical leave) or facing any disciplinary actions.
Pro-Rated Bonuses: Some companies may offer pro-rated bonuses for employees who have not worked the full year. For example, if the bonus is based on a percentage of annual salary, a new employee who worked for only half the year might receive half of the full bonus.
Company Profitability: In some cases, bonuses are tied to the financial performance of the company. If the company is not profitable, it may not offer bonuses that year.
Specific Job Roles: Certain roles or departments may have different bonus structures. For example, sales teams often have bonuses tied to meeting or exceeding sales targets.
Discretion of Management: Ultimately, the decision to award a bonus is often at the discretion of the company's management or leadership. They may consider various factors, including the ones listed above.
Thanks
From India, Bangalore
Acknowledge(0)Amend(0)
The eligibility for a yearly bonus typically depends on the company's specific policies and practices. There is no universal standard, and each organization may have its own criteria for determining bonus eligibility. Here are some common factors that companies might consider when determining eligibility for a yearly bonus:
Length of Service: Many companies require employees to have worked for a certain period (often a full year) before they become eligible for a yearly bonus. In your example, if the employee joined in May 2023, they may not be eligible for the bonus for that year, as they haven't completed a full year of service.
Performance: Some companies tie bonuses to individual or team performance. This could be assessed based on factors like annual performance reviews, achievement of goals, or other performance metrics.
Employment Status: Employees who are in good standing and in an active employment status at the time of bonus distribution are usually eligible. This means they shouldn't be on extended leave (like maternity or medical leave) or facing any disciplinary actions.
Pro-Rated Bonuses: Some companies may offer pro-rated bonuses for employees who have not worked the full year. For example, if the bonus is based on a percentage of annual salary, a new employee who worked for only half the year might receive half of the full bonus.
Company Profitability: In some cases, bonuses are tied to the financial performance of the company. If the company is not profitable, it may not offer bonuses that year.
Specific Job Roles: Certain roles or departments may have different bonus structures. For example, sales teams often have bonuses tied to meeting or exceeding sales targets.
Discretion of Management: Ultimately, the decision to award a bonus is often at the discretion of the company's management or leadership. They may consider various factors, including the ones listed above.
Thanks
From India, Bangalore
Acknowledge(0)Amend(0)
If the employee joined in May 2023, they will be eligible to receive a bonus in the financial year 2024-25 only. The conditions are:
(1) The employee must have worked for at least 30 days in 2023-24. For example, a person who joined in May 2023 should have worked for at least 30 days in this financial year.
(2) Their salary should not exceed Rs 21,000 per month.
From India, Kannur
Acknowledge(0)Amend(0)
(1) The employee must have worked for at least 30 days in 2023-24. For example, a person who joined in May 2023 should have worked for at least 30 days in this financial year.
(2) Their salary should not exceed Rs 21,000 per month.
From India, Kannur
Acknowledge(0)Amend(0)
The views mentioned by Dr. B V Raghunath are not in accordance with the provisions of the Payment of Bonus Act. The policy of any company cannot be in contravention of the provisions of the Payment of Bonus Act. Payment of excess bonus even for non-eligible employees can be a company's policy, but no company can deny a bonus to any employee who has worked for at least 30 days in an accounting year and whose salary is less than Rs. 21,000/-.
The question asked is whether an employee is eligible to get a bonus if he has joined in May 2023 when the accounting year is from January 2023 to December 2023. As per the Payment of Bonus Act, a bonus has to be paid within 8 months from the closing of the accounting year, and an employee who has worked at least for 30 days and is drawing wages below Rs. 21,000/- per month is eligible to get a bonus. Therefore, the employee who has joined in May 2023 is eligible to get a bonus within 8 months from January 2024, i.e., before August 2024, and therefore he will not get a bonus during the period from May 2023 to August 2023.
From India, Pune
Acknowledge(0)Amend(0)
The question asked is whether an employee is eligible to get a bonus if he has joined in May 2023 when the accounting year is from January 2023 to December 2023. As per the Payment of Bonus Act, a bonus has to be paid within 8 months from the closing of the accounting year, and an employee who has worked at least for 30 days and is drawing wages below Rs. 21,000/- per month is eligible to get a bonus. Therefore, the employee who has joined in May 2023 is eligible to get a bonus within 8 months from January 2024, i.e., before August 2024, and therefore he will not get a bonus during the period from May 2023 to August 2023.
From India, Pune
Acknowledge(0)Amend(0)
Some companies have a prorated bonus system for employees who join mid-year. In this case, the bonus is calculated based on the portion of the year the employee has worked. For example, if the bonus cycle is from January to December, an employee joining in May might be eligible for a bonus based on their months of service.
Retro Bowl
From Sweden, Stockholm
Acknowledge(0)Amend(0)
Retro Bowl
From Sweden, Stockholm
Acknowledge(0)Amend(0)
There is no discretion or policy of the organization while making bonus payment as per the PB Act. As Mr. Madhu TK has explained, if the condition of getting a bonus is fulfilled, the employee is eligible for a bonus. Bonus is to be paid for the financial year 2023 as the bonus cycle is Jan - Dec as per the PB Act in 2024.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in www.usdhrs.in
From India, New Delhi
Acknowledge(0)Amend(0)
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 skb@usdhrs.in www.usdhrs.in
From India, New Delhi
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc