payment of bonus act-basic or gross salary??
CiteLegal
 
HOME RISE NEW ABOUT LOGIN
Home > Human Resource Section > Labor & Employee Relations

payment of bonus act-basic or gross salary??

erankushmehta Started The Discussion:

There has been an amendment in payment of bonus act by an ordinance issued in 2007 which mandates an organisation to give bonus to employees drawing wages or salary upto rs. 10000.
1) Please let me know if the 'wages' or 'salary' reffered to in the act means basic salary or gross salary.
2) My friend is having a problem in getting his bonus because his company is saying the act refers to gross salary(and his is greater than 10000) while i have seen companies handing out bonus on basic salary.
3) Is there any govt. document my friend can show to his company to show that the act refers to basic salary.What can he do? please guide.

marksman20in - Member Since: Jun 2008
Quote:
Originally Posted by tsivasankaran View Post
Hi

It is on Basic plus DA

Give the break up of your friends salary

Siva
For Bonus purpose - defination of salary/wages includes following factors and not only Basic+DA, so please be aware it is not counted only on Basic and DA.
21)
"salary or wage" means all remuneration (other than remuneration in respect of over-time work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment and includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living), but does not include-
(i)


any other allowance which the employee is for the time being entitled to;
(ii)




the value of any house accommodation or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles;
(iii)




any travelling concession;
(iv)




any bonus (including incentive, production and attendance bonus);
(v)




any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the being in force;
(vi)




any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him;
(vii)


any commission payable to the employee.

From Shailesh (Statutory Manager)

B. RAVI MURUGAN - Member Since: Dec 2007
Dear All

Allthough the ceiling is 10000 and the payable amount is 35oo/- nowadays limited companies are adding bonus in the employees Cost to the Company to avoid the issues. Bonus minimum percentage is 8.33% and the maximum depends upon the Company's willing and the profit generated for the budget year. I think you have understood.

Thanks & Regards

B. RAVI MURUGAN

hiankur007@gmail.com - Member Since: Jun 2008
Hi All,

Could any body tell me, tht ex employee will also eligible for this period. Suppose I worked for an organization from Nov 2005 to Jan 2008 and then joined new Organization in feb. So ex Organization will also give me the bonus or not

saravanarajan - Member Since: Jan 2008
Yes. Your bonus due will have to be paid to you when your full and final settlement is given to you from your previous employer -Saravana Rajan

awasthi_vandana - Member Since: Sep 2008
I needed help.. Can any one share with me on What is bonus act? require hard copy of its RULES & REGULATION. waiting for all +ve response. Thanks, Vandana

prempaliwal5790 - Member Since: Jan 2009
Dear All,

I want to know What is the ceiling in Bonus Act 1965. If any employee geting salary more than ceiling then company have to give Bonus to that employee or not. Also tell me that ceiling is Basic salary / gross salary.

Regards,

P R Paliwal

yajuvendra - Member Since: Feb 2008
Bonus is mendatory if the Salary is not above 10000 and will be calculated on Rs. 3500 (Min 8.33 to Max 20%)
But if your salary exceeds 10000 then it is on employer's will


Please check below section 21 of bonus ACT about the salary and Wages means under this act

“salary or wage” means all remuneration (other than remuneration in respect of over-time work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment and includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living), but does not include-
(i) any other allowance which the employee is for the time being entitled to;
(ii) the value of any house accommodation or supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles;
(iii) any traveling concession;
(iv) any bonus (including incentive, production and attendance bonus);
(v) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the time being in force;
(vi) any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him;
(vii) any commission payable to the employee.
Explanation. – Where an employee is given in lieu of the whole or part of the salary or wage payable to him, free food allowance or free food by his employer, such food allowance or the value of such food shall, for the purpose of this clause, be deemed to from part of the salary or wage of such employee;

vipinmanav - Member Since: Sep 2008
Dear, m sending mixture of all. It will help u. regards vipin


Attached FilesProvided by community member vipinmanav. Join us to learn and grow with your peers.
File Type: doc PAYMENT OF BONUS ACT.doc (36.5 KB, 1097 views)
yajuvendra - Member Since: Feb 2008
(prashant.ca) at http://www.citehr.com/members/379574-prashant-ca/, At this basic one is not eligible for the bonus amount Thanks Yajuvendra Singh



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


13
LIKES

16685
VIEWS

28
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