Bonus - Pdf Download [thread 167005]

could you make me know about the seiling amount and it be used

if any person absent before pay holiday and after that he has already taken leave that will he be eligible for getting ph

Whether Employees receiving a net salary of less than Rs. 10,000 eligible for Bonus as per the new amendments? Do we need to consider the gross salary or net salary per month for observing the rule?

Dear Friends,
All those employees who are drawing the gross salary of Rs. 10,000/- and below are eligible for bonus. The ceiling is Rs. 3500.00. The calculations is 3500x12 x % of bonus declared by the management. If it is 20% then the bonus amount shall be Rs. 8400/-. All the employees even the trainees, contract employees on the Managemnt rolls are eligible for bonus. Some Management pay's bonus on prorata basis linked to attendance.
Even the retired employees for that accounting year eligible for bonus(prorata basis).
Hope this clears all the doubts about bonus
G.K.MANJUNATH
Manager-HR

Hi All,
According to Payment of bonus ACT-1965 , the employee should get Rs.2500 then only he is eligible for bonus & it is calculated at @ 20% . If the employee gets 10,000 then also he will be paid a bonus which will be calculated on Rs.3500 ie the amount comes to Rs.8400 per annum.
For more query plz feel free to mail in,
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Thanks,
Sangeeta

Dear Parverzhrir,
Are you in HR Dept or in Finance Dept? Have you tried to go thro 'Payment of Bonus Act' and its amendments? There is ceiling for eligibility ( some one has alredy mentioned it) and there are Minimum and maximum amount payable as per Act. Who qualifies for bonus is also given there. Please go thro and understand yourself rather than asking for spoon feeding. I am telling this for your development in Career.
Dont feel bad. Try to grab knowledge and then seek clarifications from forum experts. OK
Gopan

Two issues are to be considered;


Salary Eligibility for bonus: is less than 10000 i.e u r eligible for bonus if u r salary is les that r 10,000 as per the Act

Bonus calculation: Bonus shall be calculated on Rs 3500 if u r salary is more than rs 3500. Pls see the example for more clarity.

Case A: Monthly wages greater than Rs 3500/-

Gross Monthly Wages of Workmen “A”

= Rs 5190


Bonus Payable Wages of Workmen “A”
=Rs 3500


Bonus Payable @ existing rate assuming that the workman comes regularly
=Rs3500*Bonus rate*12 months


Case B: Gross Monthly wages less than Rs 3500/-

Gross Monthly Wages of Workmen “B”
= Rs 3120


Bonus Payable Wages of Workmen “B”
=Rs 3120


Bonus Payable @ existing rate assuming that the workman comes regularly every month
=Rs3120* Bonus rate *12 months


Note : Please note the bonus rate will be decided by the company ; subject to minimum 8.33% and maximum 20% as per Payment of Bonus Act.

Amendment in Bonus act was:

1. Meaning of Salary : eligible to get the bonus whose salary beyond 10,000/- per month (before amendment it was 3500/-)

2. Salary for calculation : it was amended 3500/- per month (before amendment it was 2500/-)

How to calculate the bonus:

Minimum rate :8.33%
Maximum rate : 20%
(as per Payment of Bonus Act)

Calculation : 3500 x 12 X 20% = 8400/- (maximum)

Before amendment:

2500 X 12 X 20% = 6000/-
The method to calculate bonus under the act has NOT changed.

What has changed is as follows:

1. Coverage: Any employee who draws salary/wage (Basic +DA) less than Rs. 10000/- per month will now due to this amendment be covered as an employee under the Payment of Bonus Act 1965. (In past this limit was Rs. 3500/- per month (Basic +DA)
2. The percentage of bonus is a derived percentage from the method prescribed under the act (of calculating Gross Profit, Available Surplus and the Allocable Surplus and then the percentage of Bonus that can be paid.
3. The law stipulates that even when the company makes a loss, it is obliged to pay a bouns of 8.33% and whatever the profits the company cannot pay bonus exceeding 20% The first is called the Statutory Minimum Bonus and the other is called the statutory Maximum Bonus. Subject to other provisions of the act the percentage of bonus varies between these two levels.
4. The rule is that the calculated bonus is to be paid on the actual salary/wage (Basic+DA) upto (now) Rs. 3500/- (In past this limit was Rs. 2500/-) and the maximum salary/wage (Baisc+DA) on which bonus can be paid is Rs. 3500/- (In past this limit was Rs. 2500/-
5. Therefore if the calculated bonus was 20% then in past an employee drawing salary/wage between Rs. 2500/- and Rs. 3500/- per month would get Rs. 6000/- as Bonus (i.e. 2500*12*20%) and now he would get Rs. 8400/- under same conditions.
(i,e, 3500*12*20%)

Bonus Calculation

Two issues are to be considered;

Salary Eligibility for bonus: is less than 10000 i.e u r eligible for bonus if u r salary is les that r 10,000 as per the Act

Bonus calculation: Bonus shall be calculated on Rs 3500 if u r salary is more than rs 3500. Pls see the example for more clarity.

Case A: Monthly wages greater than Rs 3500/-

Gross Monthly Wages of Workmen “A”

= Rs 5190

Bonus Payable Wages of Workmen “A”

=Rs 3500

Bonus Payable @ existing rate assuming that the workman comes regularly

=Rs3500*Bonus rate*12 months

Case B: Gross Monthly wages less than Rs 3500/-

Gross Monthly Wages of Workmen “B”

= Rs 3120

Bonus Payable Wages of Workmen “B”

=Rs 3120

Bonus Payable @ existing rate assuming that the workman comes regularly every month

=Rs3120* Bonus rate *12 months

Note : Please note the bonus rate will be decided by the company ; subject to minimum 8.33% and maximum 20% as per Payment of Bonus Act.

Amendment in Bonus act was:

1. Meaning of Salary : eligible to get the bonus whose salary beyond 10,000/- per month (before amendment it was 3500/-)

2. Salary for calculation : it was amended 3500/- per month (before amendment it was 2500/-)

How to calculate the bonus:

Minimum rate :8.33%

Maximum rate : 20%

(as per Payment of Bonus Act)

Calculation : 3500 x 12 X 20% = 8400/- (maximum)

Before amendment:

2500 X 12 X 20% = 6000/-

The method to calculate bonus under the act has NOT changed.

What has changed is as follows:

1. Coverage: Any employee who draws salary/wage (Basic +DA) less than Rs. 10000/- per month will now due to this amendment be covered as an employee under the Payment of Bonus Act 1965. (In past this limit was Rs. 3500/- per month (Basic +DA)

2. The percentage of bonus is a derived percentage from the method prescribed under the act (of calculating Gross Profit, Available Surplus and the Allocable Surplus and then the percentage of Bonus that can be paid.

3. The law stipulates that even when the company makes a loss, it is obliged to pay a bouns of 8.33% and whatever the profits the company cannot pay bonus exceeding 20% The first is called the Statutory Minimum Bonus and the other is called the statutory Maximum Bonus. Subject to other provisions of the act the percentage of bonus varies between these two levels.

4. The rule is that the calculated bonus is to be paid on the actual salary/wage (Basic+DA) upto (now) Rs. 3500/- (In past this limit was Rs. 2500/-) and the maximum salary/wage (Baisc+DA) on which bonus can be paid is Rs. 3500/- (In past this limit was Rs. 2500/-

5. Therefore if the calculated bonus was 20% then in past an employee drawing salary/wage between Rs. 2500/- and Rs. 3500/- per month would get Rs. 6000/- as Bonus (i.e. 2500*12*20%) and now he would get Rs. 8400/- under same conditions.

(i,e, 3500*12*20%)

This bonus is a part of our salary added in our CTC in our letter, to be paid at the end of financial year. So, how any emloyer can stop it for payment? is my question or is there any clause aplicable for bonus also in case of CTC salary??

Dear All
Notification under payment of bonus act is attached herewith
i think all doubt should be clear
regards
mukesh sharma