skm Started The Discussion:
Dear Hr Faternity,

I have a question on the limit/ceiling of Bonus payable as per the act. I want to know the limit/ceiling of bonus and if one exceeds the limit how do we show the same in the registers.plz get me the detailed formats through which same can be mantained. I also want to know if the company is liable to pay bonus in case a employee exceeds the ceiling/limit.

Thanx & regds
Dear SKM,

Bonus is calculated on the basic salary. The minimum % to be given as bonus would be 8.33% and Maximum % would be 20%. Anything given above 20% is caled as exgratia payment.

Your second query is limit of bonus ?

The limit for calculating bonus is Rs.10000/- on basic . Any one drawing basic salary which is more than Rs. 10000/- is ineligible for bonus as per act. There are two types of bonus, one is statutory bonus and other is customary bonus. You have to show only statutory bonus paid in the register maintained in Form C and D as per bonus act.

The company is not liable to pay bonus if any one crosses the limit.

Attached FilesProvided by community member scope.dinesh. Register to join your network of peers.
File Type: doc FormC-Bonus.doc (22.5 KB, 7702 views)
File Type: doc Form D-Bonus-Format.doc (27.0 KB, 4724 views)
Dear Dinesh, Thank u so much. I could not use this site due to some server problems. Once again I would like to thank u. Thanx & regds Manju
Dear All, Kindly clear me if the bonus is paid above 20% on basic salary . for Example if bonus paid is 25% the 5% would be exgratia. Regards, Suman
Dear All, If someone is on maternity leave that time she is eligible for bonus so how to calculate ? what basic & spl to be consider ? — — — — - MANOJ PATIL 98222 72 152
But anyone who draws basic salary more than 10000/- is not eligible for bonus.but if company wishes then can give it or not??????
Dear HR com,

I have situational query?

Mr. X joined in ABC Co. on on annual CTC of Rs 292500/- (Rs 22500/- per month and Rs 22500/- as yearly bonus). He resigns before completion of 1 year. Is he eligible for the bonus?

- regards


If the basic+DA per month is less than Rs. 10000/- then only statutory bonus is payable. Please confirm on this aspect so that I can give you further advice. As far as working duration is concerned, the statutory bonus is payable to employee if he has worked for minimum 30 days in a financial year of which bonus is to be paid. Please note that the bonus is always paid based on the number of days of service the employee has actually rendered. It means if an employee has worked for 4 months in a financial year and he resigned in 5th month, he is entitled for the statutory bonus as he has worked for 30 days but he will get the bonus only for 4 months and not for entire period.
Hi Manish...

The employee is in executive (assistant Mgr) category and the the bonus indicated in his appointment letter was part of CTC (not a statutory bonus). However, no performance/profit based condition is bear with his appointment letter. In this case if the company is not paying the bonus at the time of Full & Final settlement, can he take go with judicial way ?

please advise.

Dear all Is there any employee will get minus(-) F & F amount? Please clarify. Regards sai.


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