Dear Mr. Saikumar,
I am working in a Hotel Industry. Just want to know more about bonus Act. When is a employee eligible for Bonus.
Our owner says we don't have to give Bonus for first three years. I am working as a Manager HR, am bit confused.
Please advise.
Stanley Devdas
From India, Pune
I am working in a Hotel Industry. Just want to know more about bonus Act. When is a employee eligible for Bonus.
Our owner says we don't have to give Bonus for first three years. I am working as a Manager HR, am bit confused.
Please advise.
Stanley Devdas
From India, Pune
Mr.Stanley
The Payment of Bonus Act 1965 covers an employee whose wages are Rs 10000/-p.m or less. Therefore you should be within the said wage bracket to claim bonus.If your hotel is new and is not making profit, it is exempted from paying bonus for a period of five years. therefore every thing depends up on the facts and there cannot be a general reply.
B.Saikumar
HR & Labour Law Advsior
Mumbai
From India, Mumbai
1899The Payment of Bonus Act 1965 covers an employee whose wages are Rs 10000/-p.m or less. Therefore you should be within the said wage bracket to claim bonus.If your hotel is new and is not making profit, it is exempted from paying bonus for a period of five years. therefore every thing depends up on the facts and there cannot be a general reply.
B.Saikumar
HR & Labour Law Advsior
Mumbai
From India, Mumbai
I fully agree with Mr. Saswata Banerjee and would further like to add that the payment of Bonus as per contract will depend on the wording of the contract. In case it is payable annually only and there is no mention about prorata payment and you want to leave the services without completing the year it may be refused by the employer as such the wording of the specific clause is very important in your case. if you can let us know the clause it may be advised properly.
pkjain
From India, Delhi
pkjain
From India, Delhi
3500 is the ceiling amount, can pay to those getting basic salary of up to 10K, above 10K depends on employer’s, if wish to pay.
From India, Delhi
From India, Delhi
Hi Sasi, As like PF & ESI, whether we have any ceiling for payment of bonus??? Is all employees are eligible for drawing bonus or we can eliminate any on basis of their salary??? Plz clear my doubts.
From India, Coimbatore
From India, Coimbatore
Hi Brindha
under the Payment of Bonus Act,1965 As per sec. 2(13) every employee drawing salary up to Rs. 10,000/- is covered under the Act. Means thereby that every employee drawing salary upto 10K is entitle for Bonus, provided he must have worked atlest 30 working days in a year(as per sec.8 )
The Act further provides the method of calculation under sec. 12, which provides that when the salary/wages of an employee exceeds 3,500/- per mensem to an employee shall be calculated as if salary/wages were 3,500/- only.
Sec. 10 of the Act provides that minimum bonus shall be 8.33% and sec. 11 provides the maximum bonus limit upto 20%
However, if the employer wish can pay bonus to thier employees not covered under the Act there is no restrictins for that.
pkjain
From India, Delhi
under the Payment of Bonus Act,1965 As per sec. 2(13) every employee drawing salary up to Rs. 10,000/- is covered under the Act. Means thereby that every employee drawing salary upto 10K is entitle for Bonus, provided he must have worked atlest 30 working days in a year(as per sec.8 )
The Act further provides the method of calculation under sec. 12, which provides that when the salary/wages of an employee exceeds 3,500/- per mensem to an employee shall be calculated as if salary/wages were 3,500/- only.
Sec. 10 of the Act provides that minimum bonus shall be 8.33% and sec. 11 provides the maximum bonus limit upto 20%
However, if the employer wish can pay bonus to thier employees not covered under the Act there is no restrictins for that.
pkjain
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Annual return Bonus Act.pdf