Friends,
Some common points are:
1. Retrospective amendment of the Act from 1.4.2014 has been stayed by various High Courts and as per provisions of Constitution of India, it will be applicable throughout India.
2. Kerala High Court vide order dated 26.8.2016 has also stayed linking of bonus with minimum wages which will also be applicable throughout India.
3. For the purpose of bonus, 'salary or wages' means basic salary + DA and not gross salary. [Sec.2(21)]
4. Bonus is calculated depending upon allocable surplus of each manufacturing unit separately and not for the company as a whole. Same company may pay different bonus for different units.
5. In case of new units bonus will be payable within first 5 years only if there is allocable surplus [Sec.16].
Procedure for calculation of bonus:
1. Check whether your unit is liable to pay bonus as per Sec.16.
2. Make a list of employees entitled to get bonus for 2015-16.
(As per Sec.2(13) employees drawing salary upto Rs.21,000 p.m. (basic + DA) will be entitled to get bonus. As per Sec.8 employee must have worked for minimum 30 days in the adcounting year. As per Sec.9 employee is disqualified from bonus if he is dismissed for fraud etc.)
3. In the list insert a column for salary of each eligible employee eligible for bonus and make total of the same.
(As per Sec.12 such salary shall be restricted to Rs.7,000 p.m.)
4. Calculate allocable surplus of the unit considering set-on and set-off provisions where applicable.
5. Divide allocable surplus as per (4) above by total eligible salary as per (3) above to get rate of bonus. Such rate should be minimum 8.33% and maximum 20%.
6. Multiply eligible salary of each employee with rate of bonus to get bonus payable to each employee.
(Hence such amount will be maximum 7000 x 12 x 20% = 16,800)
7. Make payment of bonus within 8 months of close of accounting year, i.e. by 30.11.2016 (Sec.19).
8. Make required entries in registers A (computation of allocable surplus), B (set-on and set-off of allocable surplus) and C (bonus due to each employee). [Rule 4]
9. File annual return of bonus in Form D within 30 days of above time limit, i.e. by 30.12.2016 (Rule 5).
Thanks
Some common points are:
1. Retrospective amendment of the Act from 1.4.2014 has been stayed by various High Courts and as per provisions of Constitution of India, it will be applicable throughout India.
2. Kerala High Court vide order dated 26.8.2016 has also stayed linking of bonus with minimum wages which will also be applicable throughout India.
3. For the purpose of bonus, 'salary or wages' means basic salary + DA and not gross salary. [Sec.2(21)]
4. Bonus is calculated depending upon allocable surplus of each manufacturing unit separately and not for the company as a whole. Same company may pay different bonus for different units.
5. In case of new units bonus will be payable within first 5 years only if there is allocable surplus [Sec.16].
Procedure for calculation of bonus:
1. Check whether your unit is liable to pay bonus as per Sec.16.
2. Make a list of employees entitled to get bonus for 2015-16.
(As per Sec.2(13) employees drawing salary upto Rs.21,000 p.m. (basic + DA) will be entitled to get bonus. As per Sec.8 employee must have worked for minimum 30 days in the adcounting year. As per Sec.9 employee is disqualified from bonus if he is dismissed for fraud etc.)
3. In the list insert a column for salary of each eligible employee eligible for bonus and make total of the same.
(As per Sec.12 such salary shall be restricted to Rs.7,000 p.m.)
4. Calculate allocable surplus of the unit considering set-on and set-off provisions where applicable.
5. Divide allocable surplus as per (4) above by total eligible salary as per (3) above to get rate of bonus. Such rate should be minimum 8.33% and maximum 20%.
6. Multiply eligible salary of each employee with rate of bonus to get bonus payable to each employee.
(Hence such amount will be maximum 7000 x 12 x 20% = 16,800)
7. Make payment of bonus within 8 months of close of accounting year, i.e. by 30.11.2016 (Sec.19).
8. Make required entries in registers A (computation of allocable surplus), B (set-on and set-off of allocable surplus) and C (bonus due to each employee). [Rule 4]
9. File annual return of bonus in Form D within 30 days of above time limit, i.e. by 30.12.2016 (Rule 5).
Thanks