Bonus payment - Eligible salary
CiteLegal
 
HOME RISE NEW ABOUT LOGIN
Home > Human Resource Section > Employee Compensation & Benefits

Bonus payment - Eligible salary

venkyz_sri Started The Discussion:

Dear sir,

If an employee is drawing more than 10,000/- Basic+DA per month will he be eligible for bonus(min 8.33%)? In the Bonus act it is not mentioned about the non eligibility of bonus. As it says minimum of 30 days of working in the finanacial year will make a person eligible for payment. I request a clarification in this reagard and also if some body helps with some case laws will be highly appreciated.

Regards,

Venkat

p ramachandran - Member Since: Aug 2007
The salary limit of Rs.10000 is the elegibility of recieving bonus. The number of days limit is condition for the persons elegible for bonus.

R.N.Khola - Member Since: Feb 2009
Dear Venkat,

An employee will be entitled to receive bonus for a accounting year if the employee actually works in the establishment for minimum 30 days in that accounting year for which the employer is liable to pay bonus.When the Act itself is clear then there is no need to go for any Ruling.For the definition of employee you may go through section2(13) of the Payment of Bonus Act, 1965.

Regards,
R.N.Khola
Sr. Associate
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
311, AKD Tower, Sector 14, Gurgaon
09810405361

vinodkaul - Member Since: Dec 2007
As per payment of bonus act maximum eligible salary for computation of bonus is Rs.3500/-. this implies that if a company wants to give bonus to all employees , the same will be calculated on Rs. 3500.00 only even if salary drawn by the employee is higher than Rs.3500.00

The maximum %gae is 20.

Please let me if u want any further clarification.

HAPPY DIWALI TO CIYTEHR FAMILY.

VINOD KAUL

prasanna reddy - Member Since: Oct 2009
Dear sir,

According to bonus act employee should be able to work more than 1 month at the same time there should be a round figure 3500/-for 8.335 of bonus
it should be applicable for all employees (left employee,present employee)
some times company will giv more than 8.33% its depend on firm


Thanks,

Ms.Prasanna reddy
Executive-HR
Quote:
Originally Posted by venkyz_sri View Post
Dear sir,

If an employee is drawing more than 10,000/- Basic+DA per month will he be eligible for bonus(min 8.33%)? In the Bonus act it is not mentioned about the non eligibility of bonus. As it says minimum of 30 days of working in the finanacial year will make a person eligible for payment. I request a clarification in this reagard and also if some body helps with some case laws will be highly appreciated.

Regards,

Venkat

venkyz_sri - Member Since: Nov 2006
Thank you all for the reply. As per this I understood that the 10,000 limit is there only for caculation and the same does not determine the eligibility. So every person who works for more than 30 days in a Financial year is eligible for bonus (8.33%) irrespective of his Basic+DA (which may be more than 10,000 also).

sushil.meenakshi - Member Since: Aug 2009
Still it is not crystal clear whether employee is entitled for bonus if his basic salary is more then 10000 ? Please clarify

R.N.Khola - Member Since: Feb 2009
Dear

It is clarified that if an employee is getting more than Rs10,000/- per month as wages or salary as defined under section 2(21) of the Payment of Bonus Act, 1965 then he will not be entitled to receive any bonus from the employer.You may also go through the definition of the employee under section 2(13) of this Act.Go through the Payment of Bonus Act then it will become crystal clear to you also.

Regards,
R.N.Khola
Sr. Associate
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
311, AKD Tower, Sector 14, Gurgaon
09810405361

vinodkaul - Member Since: Dec 2007
Dear All,

The condition of putting 30 days service is essential , however max salary on which bonus as per act can be given is Rs.3500.00 per month. Sec 12 of the Payment of Bonus Act is clear about the cases wherein salary drawn is higher than Rs.3500.00.

The Bonus is paid on Rs.3500.00 only min. 8.33% max.20%. Any amount paid over and above the bonus shall be treated as Ex-Gratia.

Hope the matter is clear.

Regards,

Vinod Kaul

Thiruvelanramakrishnan - Member Since: May 2009
Dear Khola
Pl clarify

1. An employee getting salary more than 10,000/- is not eligible.
2. Though an employee may receive a salary of 9000/-or 8000/-,
the calculation of bonus will be restricted to Rs.3500/-

is it correct? if it is wrong pl explain

Regards
Thiru

Quote:
Originally Posted by R.N.Khola View Post
Dear

It is clarified that if an employee is getting more than Rs10,000/- per month as wages or salary as defined under section 2(21) of the Payment of Bonus Act, 1965 then he will not be entitled to receive any bonus from the employer.You may also go through the definition of the employee under section 2(13) of this Act.Go through the Payment of Bonus Act then it will become crystal clear to you also.

Regards,
R.N.Khola
Sr. Associate
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
311, AKD Tower, Sector 14, Gurgaon
09810405361



Found This Useful? +Vote Up This Page Via Google.  

Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.






Explore Topical Knowledge Areas

Interesting Relevant Discussions


DISCUSSSION STATISTICS


1
LIKES

4901
VIEWS

14
REPLIES

PLEASE KEEP YOUR CONDUCT PROFESSIONAL AND POLITE


3M Users, 100K+ Documents & 450K+ Discussions

Share »

Community Support & Professional Insights. Login or Register.
Email/Username     Password  

About Us - Advertise - Contact Us - RSS   On Google+  
All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network