Dear Senior Friends,
I am in confusion state that the Bonus ceiling is Rs.3500/- is mandatory ?
Our management is rigid on this issue not pay Bonus above the ceiling limit. So please clarify
Regards,
:(
PBS KUMAR
From India, Kakinada
590I am in confusion state that the Bonus ceiling is Rs.3500/- is mandatory ?
Our management is rigid on this issue not pay Bonus above the ceiling limit. So please clarify
Regards,
:(
PBS KUMAR
From India, Kakinada
Hello,
Yes, the law IS rigid that only employees drawing (Basic+DA) less than Rs. 3500/- p.m. are covered under the act. The law also states that Bonus determined under and as stipulated under the act can be paid upto a maximum salary/wage(Basic+DA) of Rs. 2500/- only.
Any law prescribes the minimum to be complied with, but this act has also mandated the maximim that can be done under the act.
However the employer IS free to pay employees not covered under the act any amount as "ex-gratia" and NOT "bonus under act" . Your company is therefore within its RIGHTS to not pay anything to those outside the scope of the act. And this will NOT create any legal problem, though it lead to discontent amongst the employees denied bonus payment due to provisions of the law itself.
As a fair practice, many organizations pay to the employees not covered under the act an identical amount but as "ex-gratia" and NOT "bonus under the act". Some come organizations cover such employees under different tyoes of Super Annuation Schemes. But this is volitional to the organizations and cannot be forced upon them!
The picture can change after the imminent amendments to Payment of Bonus Act are actually known in the form of amendment or as ordinance.
Till then we only wait and watch.
Hope the issue is resolved for you.
Regards
samvedan
October 20, 2007
From India, Pune
Yes, the law IS rigid that only employees drawing (Basic+DA) less than Rs. 3500/- p.m. are covered under the act. The law also states that Bonus determined under and as stipulated under the act can be paid upto a maximum salary/wage(Basic+DA) of Rs. 2500/- only.
Any law prescribes the minimum to be complied with, but this act has also mandated the maximim that can be done under the act.
However the employer IS free to pay employees not covered under the act any amount as "ex-gratia" and NOT "bonus under act" . Your company is therefore within its RIGHTS to not pay anything to those outside the scope of the act. And this will NOT create any legal problem, though it lead to discontent amongst the employees denied bonus payment due to provisions of the law itself.
As a fair practice, many organizations pay to the employees not covered under the act an identical amount but as "ex-gratia" and NOT "bonus under the act". Some come organizations cover such employees under different tyoes of Super Annuation Schemes. But this is volitional to the organizations and cannot be forced upon them!
The picture can change after the imminent amendments to Payment of Bonus Act are actually known in the form of amendment or as ordinance.
Till then we only wait and watch.
Hope the issue is resolved for you.
Regards
samvedan
October 20, 2007
From India, Pune
Hi all, We have talked to Lab. Officers or other senior persons in Labour Deptt. but no one is ready to say amount effectiveness of amendment dates. Regards L.C.Pal
From India, Delhi
From India, Delhi
I am drawing basic salary of Rs.6000/- p.m. Management will pay bonus of Rs.3500/- or Rs.6000/- to me. Please give me clarification on what bonus I will receive. I am present for all the working days.
From India, Gulbarga
From India, Gulbarga
Hello,
If you are a covered employee and if the Management strictly abides by the Payment of Bonus Act 1965, the you will be paid the declared bonus as though your Basic+DA is only Rs. 3500/- per month. This is a substantive provision of the act!
Regards
samvedan
October 9, 2012
--------------------------------
From India, Pune
If you are a covered employee and if the Management strictly abides by the Payment of Bonus Act 1965, the you will be paid the declared bonus as though your Basic+DA is only Rs. 3500/- per month. This is a substantive provision of the act!
Regards
samvedan
October 9, 2012
--------------------------------
From India, Pune
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf
A THEORETICAL STUDY ON ‘GLASS CEILING CONCEPT’.doc