Accprding to The Payment of Bonus Act ,1965
Every employee receiving salary or wages upto RS. 3,500 p.m. and engaged in any kind of work whether skilled, unskilled, managerial, supervisory etc. is entitled to bonus for every accounting year if he has worked for at least 30 working days in that year.
I Disagree, the ceiling has been raised from 3500 to 10000 with retrospective effect from April 2006. Pl clarify the same at your end Regards, Nilendra
Hi to all
Appreciate all of you for your response towards this question.
I agree that wage ceiling limits has been enhanced to Rs.10,000/- p.m.
However, my question is from a different perspective.
I repeat the question-
An employee who has joined the company four month back only (i.e. in the month of July,2007) is he entiled to bonus or not ?
Early response awaited.
Hi Armaan !
The bonus which is paid during Diwali 2007 (actually it is six months from finalizing the balance sheet for fin year 2006-07) is for earnings of an employee in the year 2006-07 i.e. upto 31.03.2007.
If some one has joined in July 07 or 1.04.2007 onwards, he / she will not be eligible for payment of bonus in the year 2007 (say diwali)
Bonus is payable after completion of financial year. and after balance sheet is finalized
so in your case, the bonus will be payable in Oct 2008
Hope this brings clarity to you.
Do let me have feedback.
What Hiten Parekh mentioned in his reply is correct.
I think the bonus is paid before completing the 8 months,once balance sheet is finalised.
E.g: Balance sheet finalised in March 2006-07 , then bonus is paid in or before 30 th November 2007. In your mentioned case, the individual will be paid bonus nextyear.
Stick to the basics Men, First Let him Complete his Probation Period, Then he is Eligible.... Immediately After joining know one is eligible for bonus.
If your company is paying it on monthly bases. Even though he/she need to complete probation period.... ok
By now am sure after reading the posts above you are aware about the eligibility. Any employee with Basic less then equal to Rs. 10000/- & served 30 days in the accounting year is eligible for Bonus on Rs. 3500/-
Can you pl mention what is your Basic & the Bonus being distributed in January is for which accounting year. You can rather speak to your HR department directly for the same.
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