Payment of Bonus Act: Eligibility to receive Bonus for 2008-2009 due before 30th November 2009.
Dear Friends,
Can I have a clarification and views on the following:
An employees has an eligible salary under the Payment of Bonus Act of Rs.9990/- for the period 1April 2008 to 30th Oct 2008.From 1st November 2008 his salary becomes 11,000/-by an increment in his Basic.
1. The question is, will he be entitled for Bonus or not in view of his Salary exceeding the Qualifying limit of Rs.10, 000/-pm under Section 2 of the Act?
2. If he is entitled, should it be restricted till 30th Oct 2008.i.e Rs.3,500/multiplied by 7 months?
Would be extremely grateful for views on the above.
Thanks,
Regards,
Sanjib.
From India, Delhi
8Dear Friends,
Can I have a clarification and views on the following:
An employees has an eligible salary under the Payment of Bonus Act of Rs.9990/- for the period 1April 2008 to 30th Oct 2008.From 1st November 2008 his salary becomes 11,000/-by an increment in his Basic.
1. The question is, will he be entitled for Bonus or not in view of his Salary exceeding the Qualifying limit of Rs.10, 000/-pm under Section 2 of the Act?
2. If he is entitled, should it be restricted till 30th Oct 2008.i.e Rs.3,500/multiplied by 7 months?
Would be extremely grateful for views on the above.
Thanks,
Regards,
Sanjib.
From India, Delhi
Dear Sanjib,
The concerned employee will be entitled to Bonus only for the period he is covered under the definition of the employee under the Payment Of Bonus Act, 1965.
R.N.Khola
From India, Delhi
The concerned employee will be entitled to Bonus only for the period he is covered under the definition of the employee under the Payment Of Bonus Act, 1965.
R.N.Khola
From India, Delhi
Dear R.N.Khola, 1) Yes, he is entitled to the bonus till he getting the salary less then 10,000/- per month, 2) Yes, calculation is OK. but LWP position shall also be considered. Regards Rupesh Bhatt
From India, Mumbai
From India, Mumbai
Dear Bhatt,
Thanks.
Yes ofcourse, if he is absent and his salary is below Rs.3500/ for a particular month,the actual earning for that month will have to be computed.
In that case it will be (Rs.3500 multiplied by 6) +Actual earning for the referred month which is below 3500/-
Thanks again,
Regards,
Sanjib.
From India, Delhi
Thanks.
Yes ofcourse, if he is absent and his salary is below Rs.3500/ for a particular month,the actual earning for that month will have to be computed.
In that case it will be (Rs.3500 multiplied by 6) +Actual earning for the referred month which is below 3500/-
Thanks again,
Regards,
Sanjib.
From India, Delhi
Dear All,
Reference to your answer I only want to confirm following points:
1) Criteria of Bonus depends on Basic Salary or whole salary included all benefits (Basic+HRA+Conv+Incentive etc)
2) As per Circular which is amended on the payment of bonus (Amendment) ordinance 2007, “ The words Rs. 3500 shall be substituted with Rs.10000.” As per this Act now will be calculated on 10000 of salary.
Looking for reply soon.
Thanks & Regards
Manoj Yadav
From India, Delhi
Reference to your answer I only want to confirm following points:
1) Criteria of Bonus depends on Basic Salary or whole salary included all benefits (Basic+HRA+Conv+Incentive etc)
2) As per Circular which is amended on the payment of bonus (Amendment) ordinance 2007, “ The words Rs. 3500 shall be substituted with Rs.10000.” As per this Act now will be calculated on 10000 of salary.
Looking for reply soon.
Thanks & Regards
Manoj Yadav
From India, Delhi
Dear Manoj Yadav,
1) Plz go through the definition of Salary or wages as given at section 2(21) of Payment of Bonus Act, 1965. Criteria for Bonus depends upon Basic salary, DA & the food allowance or value of free food.
2) If the salary exceeds up to 10,000/- pm then bonus calculation rate will be considered as 3500/- pm.
R.N.Khola
From India, Delhi
1) Plz go through the definition of Salary or wages as given at section 2(21) of Payment of Bonus Act, 1965. Criteria for Bonus depends upon Basic salary, DA & the food allowance or value of free food.
2) If the salary exceeds up to 10,000/- pm then bonus calculation rate will be considered as 3500/- pm.
R.N.Khola
From India, Delhi
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