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dear all..
plz suggest me that after raising the salary limit from 3500 to 10000..sec2(12).
hw we can calcalate for bonus previosly it was 2500 as sec-12 of [payment of bonus act,1965.
some one told me it is now 8500..
whether he is ri8 or wrong?
take this matter urgent.

awaiting your reply.
gauravagrawal
From India, Pune
Dear Gurav
Please be guide by the below for payment of Bonus
Two issues are to be considered;
Saalary Eligibility for bonus: is less than 10000 i.e u r eligible for bonus if u r salary is les that r 10,000 as per the Act
Bonus calculation: Bonus shall be calculated on Rs 3500 if u r salary is more than rs 3500. Pls see the example for more calarity.
Bonus Calculation
Case A: Monthly wages greater than Rs 3500/-


Gross Monthly Wages of Workmen “A”

=
Rs 5190
Bonus Payable Wages of Workmen “A”
=
Rs 3500
Bonus Payable @ existing rate assuming that the workman comes regularly
=
Rs3500*Bonus rate*12 months




Case B: Gross Monthly wages less than Rs 3500/-

Gross Monthly Wages of Workmen “B”

=
Rs 3120
Bonus Payable Wages of Workmen “B”
=
Rs 3120
Bonus Payable @ existing rate assuming that the workman comes regularly every month
=
Rs3120* Bonus rate *12 months


Regards
ravi
From United States
Hi,
Thanks for letting us know the exact calculation of Bonus.
I have one query, If an employee is working with the company from last 2 years. i.e has joined in Sept 2006.
Company gives the Bonus to all the employees in October or November.
Now that employee is planning to leave the organization in September itself. Then can he/she ask for the Bonus?
And is it mandatory for the Org gives him the Bonus with his F&F?
Regards,
Rajashree D
From India, Mumbai
Dear Gaurav,
Ammendment in Bonus act was:
1. Meaning of Salary : eligible to get the bonus whose salary beyond 10,000/- per month (before ammendment it was 3500/-)
2. Salary for calculation : it was ammended 3500/- per month (before ammendment it was 2500/-)
How to calculate the bonus:
Minimum rate :8.33%
Maximum rate : 20%
(as per Pyament of Bonus Act)
Calculation : 3500 x 12 X 20% = 8400/- (maximum)
Before ammendment:
2500 X 12 X 20% = 6000/-
I think you may clarify your problem
thanks.
Jagan
9903599794
From India, Visakhapatnam
Hello,

The method to calculate bonus under the act has NOT changed.

What has changed is as follows:

1. Coverage: Any employee who draws salary/wage (Basic+DA) less than Rs. 10000/- per month will now due to this amendment be covered as an employee under the Payment of Bonus Act 1965. (In past this limit was Rs. 3500/- per month (Basic+DA)
2. The percentage of bonus is a derived percentage from the method prescribed under the act (of calculating Gross Profit, Available Surplus and the Allocable Surplus and then the percentage of Bonus that can be paid.
3. The law stipulates that even when the company makes a loss, it is obliged to pay a bouns of 8.33% and whatever the profits the company cannot pay bonus exceeding 20% The first is called the Statutory Minimum Bonus and the other is called the statutory Maximum Bonus. Subject to other provisions of the act the percentage of bonus varies between these two levels.
4. The rule is that the calculated bonus is to be paid on the actual salary/wage (Basic+DA) upto (now) Rs. 3500/- (In past this limit was Rs. 2500/-) and the maximum salary/wage (Baisc+DA) on which bonus can be paid is Rs. 3500/- (In past this limit was Rs. 2500/-
5. Therefore if the calculated bonus was 20% then in past an employee drawing salary/wage between Rs. 2500/- and Rs. 3500/- per month would get Rs. 6000/- as Bonus (i.e. 2500*12*20%) and now he would get Rs. 8400/- under same conditions.
(i,e, 3500*12*20%)

Hope the issue is clear. if you have a need for more clarification, please raise your querry.

Regards
samvedan
September 23, 2008
--------------------------------------------6
From India, Pune
Dear Friends,
Can n e one clear the fact , whether bonus (acc to rule) can be incorporated in the CTC? (Pls note i am not talking abt performance bonus/incentive)
If yes then whether it can be paid in a monthly system?
If it can be incorporated in the monthly components of the gross salary then do we have to deduct ESI on that ?
Pls help me....
Regards
Sangeeta
From India, New Delhi
Dear All,
I want to clarify one thing....if an employee's Basic+DA is Rs 5000, in that case can we calculate bonus on this amount also or not. Is Rs 3500 a fixed amount and we can change only the bonus percentage (i.e 8.33% to 20%) and not the Salary amount
Best Regards
From India, New Delhi
Dear Samvedan,

Please clarify the following:-

1) For an employee to be eligible for bonus, what is the minimum duration of service
he is required to complete in an organization? Say if an employee joins in the
month of Feb'08 or May '08 is he eligible for bonus this year or only in the next
financial year?

2) If a person earns more than Rs. 10,000/- say Rs. 10,500 p.m (Basic + DA), is he
eligible for bonus? If so how is it calculated?

As per your mail, you have stated that :-

4. "The rule is that the calculated bonus is to be paid on the actual salary/wage
(Basic+DA) upto (now) Rs. 3500/- (In past this limit was Rs. 2500/-) and the
maximum salary/wage (Basic+DA) on which bonus can be paid is Rs. 3500/- (In
past this limit was Rs. 2500/-"

5. "Therefore if the calculated bonus was 20% then in past an employee drawing
salary/wage between Rs. 2500/- and Rs. 3500/- per month would get Rs. 6000/-
as Bonus (i.e. 2500*12*20%) and now he would get Rs. 8400/- under same
conditions. (i,e, 3500*12*20%)"

I could not understand this, because you have stated in the beginning that the bonus eligiblity is Rs. 10,000/- p.m (Basic + DA) so please explain "and the maximum salary/wage (Basic+DA) on which bonus can be paid is Rs. 3500" ? along with actual calculation

Regards
From India, Bharuch
Hello Gaurav

on 27th October, 2007 the President has promulgated the Payment of Bonus (Amendment) ordinance, 2007 containing the following amendments:-

i) Amendment to clause (13) of Section 2 of the Payment of Bonus Act, 1965 to raise the eligibility limit for payment of bonus from the salary or wage of Rs. 3500/- per month to Rs. 10000/- per month.

ii) Amendment to section 12 of the Payment of Bonus Act, 1965 to raise the ceiling for calculation purpose from the salary or wage of Rs. 2500/- per month to Rs. 3500/- per month;

iii) Deletion of clause (vi) of section 32 of the Payment of Bonus Act, 1965 so as to cover the employees employed through contractors on building operations.

Thus the employees, including those employed through contractors on building operations will be entitled to receive bonus as per the revised ceilings, for the year 2006-07 and onwards.

The Ordinance shall be deemed to have come into force on 1st April, 2006.

Ministry of Labour & Employment New Delhi, Kartika 07, 1929/October 29, 2007

I am also attching the GO.

There is one more addition to this if any company is paying CCA(city compensatory allowance) then it calculation becomes Basic+DA+CCA
REF THE PAYMENT OF BONUS ACT 1965(BARE ACT) PAGE 7 COMMENT ii foot note definition of wages and salary


From India, Kota

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Hello,

I am afraid that my response has caused some confusion. Let me clarify:
  1. Any employee on the rolls of the company who has worked with the company for atleast 30 days in the financial year for which bonus is being paid will be eligible to receive declared bonus (not ex-graia) on pro-rata basis.
  2. Bonus is to be paid for a given financial year. In your query the person concerned has worked for two months in one financial year and eight months in the next financial year. In both the financial years he will be eligible to receive bonus subject to other conditions.
  3. If a person earns salary/wage (i.c. Basic+DA only) of Rs. 10000/- per month or less, he is covered by the act but will be paid bonus as if his salary wage was only Rs. 3500/- only. If his salary/wage exceeds above limit of coverage (Rs. 10000/- Basic+DA) per month, he is strictly speaking outside the perview of the act (meaning that he is NOT eligible to receive bonus under the act at all)
  4. For some employee whose salary/wage is less than Rs. 3500/- (say it is Rs. 3000/-) then he will receive bonus on his actual salary/wage i.e. Rs. 3000/- in this case. But for salary/wage exceeding Rs. 3500/- per month but less than Rs. 10000/- per month, the person will be eligible to receive bonus under the act as if his salary/wage is rs. 3500/- only.
  5. Finally the examples:
  • Salary/wage (Basic+DA) above Rs. 10000/- per month excludes the person from coverage or benefits of the payment of Bonus Act altogether.
  • Salary/wage (Basic+DA) less than Rs. 10000/- per month is covered by the act and is entitled to receive bonus under the act, as may be determined.
  • Now salary/wage (Basic+DA) is say Rs. 3000/- In this case the person will be eligible to receive the declared bonus under the act on his salary of Rs. 3000/- only.
  • And now consider salary/wage (Basic+DA) to be anywhere between Rs. 3501/- per month and Rs. 10000/- per month. In this case the person will be eligible to receive declared bonus under the act on his actual salary/wage (Basic+DA) in this range.
Employees who are not covered by the act are NOT eligible to receive any bonus under the act. Many employers, regardless pay an amount equal to declared bonus as "ex-gratia". But such payment cannot disturb calculations of bonus under the act and as the name suggests it is not a compulsory payment.

I sincerely hope your queries will stand resolved. If they are not resolved, I am still available to answer more doubts.

I like your taking deep interest in the details of the legislation. keep it up.

Regards
samvedan
September 24, 2008
---------------------------------


From India, Pune
Thanx Samvedan...
That was a very nice clarification.....
Can u clear the fact , whether bonus (acc to rule) can be incorporated in the CTC? (Pls note i am not talking abt performance bonus/incentive)
If yes then whether it can be paid in a monthly system?
If it can be incorporated in the monthly components of the gross salary then do we have to deduct ESI on that ?
Pls help me....
Regards
Sangeeta
From India, New Delhi
Dear Sir This Post Is Excellent And Definately It Has Improved My Personnely Knowledge .thnaking To All The Persons Who Has Posted This Valuable Information. Rajendra
From India, Jaipur
Dear Tittli,

Please find below reply to your queries

1) For an employee to be eligible for bonus, what is the minimum duration of service
he is required to complete in an organization? Say if an employee joins in the
month of Feb'08 or May '08 is he eligible for bonus this year or only in the next
financial year? ----- Minimum of 30 days work to be performed in previous year.

2) If a person earns more than Rs. 10,000/- say Rs. 10,500 p.m (Basic + DA), is he
eligible for bonus? If so how is it calculated? ------- The Central govt. has raised the limit by amendment. Now any employee draws salary or wages below than Rs. 10000/- p.m. is eligible for the bonus payment. Technically any employee drawing salary/ wages more than the prescribed limit of Rs. 10000/- p.m. is not qualified for the bonus but yes you can pay him/her an exgratia.

As per your mail, you have stated that :-

4. "The rule is that the calculated bonus is to be paid on the actual salary/wage
(Basic+DA) upto (now) Rs. 3500/- (In past this limit was Rs. 2500/-) and the
maximum salary/wage (Basic+DA) on which bonus can be paid is Rs. 3500/- (In
past this limit was Rs. 2500/-"

5. "Therefore if the calculated bonus was 20% then in past an employee drawing
salary/wage between Rs. 2500/- and Rs. 3500/- per month would get Rs. 6000/-
as Bonus (i.e. 2500*12*20%) and now he would get Rs. 8400/- under same
conditions. (i,e, 3500*12*20%)"

I could not understand this, because you have stated in the beginning that the bonus eligiblity is Rs. 10,000/- p.m (Basic + DA) so please explain "and the maximum salary/wage (Basic+DA) on which bonus can be paid is Rs. 3500" ? along with actual calculation

Please understand the Central Govt. has increased the salary/wages limit to bring more & more employees under the perview of the Act. Rs. 10000/- is the maximum coverage limit given by the law. While calculating the bonus one has to calculate it on Rs. 3500/-.

So as per the new amendment the maximum bonus i.e. 20% will be Rs. 8400/- only.

Hope this will help you.

Regards

Manoj


A small correction to Samvedan -
In respect of employees who have exceeded the threshold limit of Rs.10,000/- per month during the year, Basic+DA up to the month in which the limit has been exceeded should considered. (For example: if an employee had Basic+Da less than 10000 for April, May and June and he got an appraisal in July whereby his Basic+DA went above 10000, bonus will have to be calculated up to June for his bonus. ie he will be eligible for 3 months bonus)
From India, Kochi
hello here is the bonus calculation
Earned basic+da x 8.33%minimum,maximum till 20%
the person who is getting more than 3500 as a bonus till 3500 its a bonus and rest it will call it has exgartia or more than 3500 it is called as exgratia
regards
Prasanna
From India, Bangalore
i didn't understand the calculation. as both the calculation are same. so whats the difference between employee who get monthly salary more than 3500 & those who get less than 3500. could u please explain me in detail.
thkx\
bandita

From India, Mumbai
Hello,

I am answering four querries in this post. I will have to therefore answer each querry by name. Kindly bear with me.

First for "sangsangeet"

CTC must be regarded only as a management budgetting tool. If you use for salary negotiations, you have to ensure that that each element included is in fact paid out OR it is clearly informed that though included, some inclusions will not be paid. Even if you that only the finite ingredients may be included in CTC. Bonus is NOT a finite ingredient except at the Minimum (8.33%) and the Maximum (20%) But Bonus as Bonus under the act is paid only to those covered by the act (and others, if the management so decides-will get only ex-gratia which is an amount always equal to the bonus paid to covered employees. No, Bonus should NOT be included in CTC.

Next, there is no provision in the Payment of Bonus Act to pay Bonus in instalments. (Even if you do, it will be termed as "advance against bonus" and will have to be reconciled and appropriated at the end of the financial year when the Bonus under the act is calculated and declared. Also how and on what basis, will you even estrimate the amount of advance to be paid. My advice is banish the thought. Stick to paying Bonus to eligible employees at the end of the year.

Lastly, even if an "advance against bonus" is paid in monthly instalments, it will atract ESI, as it is NOT bonus (when paid) and any payment made to the employee at a frequency of less than two months attracts ESI!!!

Now for "aru 729"

Your observation is correct. I had covered in my earlier reply but it was explicitly done!

For "banditapadhi"

In brief:
  1. Bonus is paid to eligible (covered employees)
  2. As at present, any employee who draws salary/wage (Basic+DA) less than Rs. 10000/- per month is eligible to receive bonus under the act.
  3. For those employees who draw salary/wage (Baisc+DA) less than Rs. 3500/- will receive the bonus declared under the act on his actual salary/wage(Basic+DA)
  4. For those who draw salary/wage greater than Rs. 3500/- per month but less than Rs. 10000/- per month will receive bonus as though their salary/wage (Basic+DA) is only Rs. 3500/- per month.
  5. The recent amendment to Payment of Bonus Act has enhanced the eligibility to receive bonus considerably. (i.e. from Rs. 3500/- to Rs. 10000/-) and the eligiblity to receive Bonus under the act marginally. (i.e. from Rs. 2500/- per month to Rs. 3500/- per month.)
I suppose this should set at rest your doubt.

Lastly for "s. Ramchandran"

No you understanding is NOT right. This mail and particularly this reply will make the point clear.

That is about all ladies & gentlemen (for the time being at least)

Regards
samvedan
September 25, 2008
---------------------------------------
From India, Pune
To All, A persion who leave service if its P.L. leave is due in company whether he is entitled to draw cash of its P.L. on basic or gross salary. Thanks. V.B.Pandey
From India, Mumbai
hi, i have doubt, if a an employee joines somewhere in the month of Sept, is that employee applicable for full bonus
From India, Pune
Dear Samavedan ji,Happy to give clarification. Every one may note it.One more point. The statutory cealing limit of Bonus is Rs. 10,000/-.On management descreation those who cross the limt may also eligible @ Rs.10,000/- called it as exgatia amount. But it will not be applicable for the employees salary covered it in CTC.Regards,PBS KUMAR
From India, Kakinada
Pl.informus regarding Bonus Act Form - A Computation of the Allocable sURPLUS UNDER sECTION 2(4) calculation method. V.B.Pandey
From India, Mumbai
Dear Pandey ji,Please see the attachment for BONUS REGISTER, under this act.Regards,PBS KUMAR
From India, Kakinada

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Dear Sangeeta

U have a right question,according to my knowledge based on the bonus Act,it can not be part and parcel of CTC

Bonus calculations will be based on balance sheet and after working allocable surplus and available as prescribed under bonus Act.then only the company will be knowing the % of bonus to be declared/payable.How can any one presume and add in to the CTC,
In case of adding in to CTC @8.33% and available % is @16% the employer is liable to pay the difference to its employees,however in all normal cicumstances it is not happening .

with regard to to ur second question whether it can attract ESI,CTC will be in TWO/THREE parts one is salary part ie basic ,HRA,and other allowences.The second part is statutory ie PF and ESI,.The Third one is others where in we can show LTA,Medical,Bonus ,hence it will not attract ESI.when we are showing the same in Third coloumn it can be paid only at the year end.
In case employee leaving the organisation before the payment ,and while settling F &F the bonus as shown in CTC is to be paid along with settlement.
If some one raises a dispute it is responsibility of the compnay to prepare workings as per bonus act.
Patrudu
098668-67772
From India, Hyderabad
Hi all,
As a new HR-person, kindley help me out. Are you all not talking about a Djiwalibonus ? What kind of bonus is this, is it obliged to be paid to all people? Please inform me,
Kindest regards,
Petra
From Netherlands, Amsterdam
Dear Gaurav
Lot Of Communication We Have Seen On This Issue.
Every One Has Put Up Their Point.
Let Me Give My Point A Very Simple Manner
As Per Bonus Act 1965 And As Per Amendment Of Last Year Please Go Throughly Following Points
1.eligibility
From India
if you gently calculate what they are earned the previous year his total earned basic*8.33%and Exgratia is 11.67% = the total payable Bonus is 20% of his earned basic amont
From India, Madras
Dear Gaurav

Lot Of Communication We Have Seen On This Issue.
Every One Has Put Up Their Point.
Let Me Give My Point A Very Simple Manner

As Per Bonus Act 1965 And As Per Amendment Of Last Year Please Go Throughly Following Points

1.ELIGIBILITY FOR BONUS AS PER ACT : BASIC+DA SHOULD BE WITHIN THE RANGE OF RS.3500/- PM TO 10000/-.

2.FOR DISBURSE OF BONUS CEILING IS RS. 3500/-
AS PER ACT STATUTORILY WE HAVE TO PAY 8.33% MINIMUM BONUS THAT COMES TO 3500*8.33% =RS.291.55 PER MONTH AND SUBSEQUENTLY RS.3500/- PER YEAR
MAXIMUM WE CAN PAY UNDER THIS ACT IS 20% THAT IS 20% OF 3500/- IS RS 700/- PM AND RS 8400/- PER YEAR.

3.EVEN WORKER WORKS FOR MINIMUM OF ONE MONTH HE IS ELIGIBLE FOR BONUS AS PER THE ACT .
4.FOR CALCULATION OF BONUS ATTENDANCE TO BE CONSIDERED FOR LAST FINACIAL YEAR (THAT 1 APR 2007 TO 31 MAR 2008 FOR BONUS TO BE PAID IN OCT 2008

4.BONUS TO BE PAID WITHIN SIX MONTHS AFTER CLOSE OF FINANCIAL YEAR THAT MEANS FINANCIAL YEAR CLOSING IS MARCH AND BONUS TO BE PAID IN THE MONTH OF OCT EVERY YEAR.
5. 'A' , 'B', AND 'C' BOOKS HAS TO BE MAINTAINED FOR BONUS AND SAME TO BE PRODUCED TO GOVT AUTHORITIES ON DEMAND

THANKS AND REGARDS

RAVINDRA SHENVI
MANAGER HR
From India
Sir,
As stated above i am agree with it but i want to know that if a peroson getting salary more then 10000 is he eligible for the bonus or not. i have read the Payment of bonus act but i could not clear my above doubt. Please clearify me.
Suraj Biswal.
From India, Bhubaneswar
The latest Bonus ordinance has been passed in the year 2007
Bonus be caliculated whose Pay+Da not exceeds Rs.10,000 Per month.
all Regular, Casual and Contract employees are eligible to receive the Bonus as per the above wage limit.
who worked 30 days in a year are also eligible to receive BONUS

dear gaurav,
Employees receiving salary upto 10000 per month are elegible for BOnus under the Bonus Act. The ceiling amount for the amount of Bonus is Rs.3500/-.If your company is willing to pay bonus for persons receiving salary more than 10000, it will be treated as Ex-gratia amount. You please gothroughthe amendment sheet in the act, as attached
From India, Madras

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Dear all,
Our company has declared bonus of 16%. so how do i calculate bonus for a person drawing monthly salary of Rs.5000.
will it be 5000*12*16% =Rs.9600 (so maximum rs8400 to be paid)
or 3500*12*16% = Rs6720 (Rs.3500 max sal limit)
Please advice at the earliest.
Regards
Athif
From India, Madras
Our company has declared bonus of 16%. so how do i calculate bonus for a person drawing monthly salary of Rs.5000.
will it be 5000*12*16% =Rs.9600 (so maximum rs8400 to be paid)
or 3500*12*16% = Rs6720 (Rs.3500 max sal limit)
Please advice at the earliest.
anand.B
From India, New Delhi
Dear Gaurav,
Please read the mail of jagan & ravi . all things related to bonus clarified by him very well. if any employee absent (LWP) you can deduct lWP amount from his bonus. calculation depend upon minimum/maximum bonus .
Regards,
Arun
09935098288
From India, Delhi
Bonus calicalations based the salary for the month ie. from April to March (Calender year) we should calculate 8.33% of wages for monthwise .but not on the annnual salary.
For example, If an employees' salary for month Rs. 10,000 in month August. and he got annual increment of Rs. 500/-in the month of Sept. then he is not eligible to recive Bonus for the month Sept. like wise.

:):)Thanx for sharing — — — — — — — — — manju

Hi Samvedan,
I need your help.
I am working with an Indian company and currently under notice period. I
am getting relieved on February 27, 2009.
My bonus component was due in March's appraisal.
I want to know that if I have worked for past 11 months, am I eligible
to get a bonus on pro-rata basis?
I am ready to wait till March end - April for the company to disperse the same.
Kindly help ASAP!
Regards,
Anshu
From India, Bangalore
This is for Anshoog and other interested members!

To be eligible to receive Bonus under the Act:
  1. You have to be a covered employee. (In case of doubt read this thread from the beginning.)
  2. You have to have worked for atleast 30 days in the agreegate during the financial year.
  3. The Bonus under the act has nothing to do with your appraisals. Only non-statutory bonus may be linked to performance and therefore to the reviews!
  4. The process that leads to declaration of bonus under the act goes as under:
  • After the close of the financial year the company accounts are finalized. Simultaneously Bonus is determined by following a method prescribed under the Payment of Bonus Act-mostly done by the company CA or the Finance Department.
  • Bonus is always a derived figure and depends upon the calculation of Allocable Surplus, Available Surplus and after taking into account the Set On and the Set Off position prescribed under the act.
  • Bacause the process of finalization of accounts, the statutory audit, calculation of bonus under the act etc. take the time, the law has stipulated EIGHT months time from the close of the financial year (i.e. upto the end of November) for the payment of statutory bonus.
Since Anshoog will be working right upto end February 09, assuming that she is a covered employee as far as the Payment of Bonus Act 1965 is considered, she HAS to get declared bonus pro-rated to the number of days she was in employment with this particular company.

Having provided the basic information, permit me to add a few observations. Very few employers meticulously adhere to the law. Often the employees as are not covered under the act are also paid derived bonus under the act but it is called by various names like, "ex-gratia", "performance bonus" etc. These are NOT to be confused with or as Bonus under the act.

Many times one finds that Bonus is paid even at 20% but being the maximum payable bonus, no one complains, yet the law may have been ignored!

I suppose you have got your answers. If there are more questions, you are welcome.

Regards
samvedan
February 10, 2009
------------------
From India, Pune
mmm.. its realy good to c.. every body here helping the people..nice to c this.. i just make my new loging 2day n become happy to part of u all guys.. I m also from HR since last 10 years
From India, Pune
Thanks Samvedan for your prompt response!
Much appreciated!
I have a few clarifications/questions.
Mine is a non-statutory bonus component. I know this is performance based and is linked with appraisal.
My performance had been "Exceed" in the last year and have contributed to the business as well. But since I will not be available in March for the appriasal, I will loose this entire money which actually I deserved.
Is there any law by which I can claim this amount or atleast a percentage of it from my exisiting company (on a pro-rata basis or otherwise)?
Kindly help as soon as possible,
Regards,
anshoog (Anshu)
From India, Bangalore
Thanks Samvedan for your prompt response!
Much appreciated!
I have a few clarifications/questions.
Mine is a non-statutory bonus component. I know this is performance based and is linked with appraisal.
My performance had been "Exceed" in the last year and have contributed to the business as well. But since I will not be available in March for the appriasal, I will loose this entire money which actually I deserved.
Is there any law by which I can claim this amount or atleast a percentage of it from my exisiting company (on a pro-rata basis or otherwise)?
Kindly help as soon as possible,
Regards,
anshoog (Anshu)

From India, Bangalore
Hello,

Thanks for appreciation.

Since we are not talking about statutory bonus, the issue is entirely concerned with terms and conditions of your employment and the outcome is therefore dependent upon the ethics and morality of the employer and the culture of the organization as any dispute between you and the employer will NOT be covered by LAbour Law but by Civil Law. If you resort to civil law it will take YEARS to get ANY outcome. I suppose you ae aware of the judicial system in the country and its lethargy and inordinate delays! Even if you ultimately WIN in a court of law, you would have lost on time and the lawyer will get more out of you that the Bonus amount and to that extent you have to take calculated decision.

Was the Bonus a part of the CTC when you were employed?

Whatever the position the logic of the situation tells me that you must get atleast the pro-rata Bonus UNLESS there is some clause in your terms & conditions which escaped your attention at the time of employment and acceptance of the offer.

Frankly you can hope to get the Bonus and the matter will rest on how the employer looks at the issue.

So, you have to be nice, polite yet firm in seeking this payment. If you are perceived to be in a fighting mood, the employer, albeit wrongly, may only "switch off" and cold shoulder the whole issue and if that happens you may simply have say good bye to the hard earned money! Sad but true!!!

Good Luck. Hoe indeed you get the hard earned money.

Regards
samvedan
February 11, 2009
---------------------------



From India, Pune
simply calculate as
number of days present from april to march and total basic and DA earned during the year and 8.33% of that
i.e total year basic * total year DA * 8.33% or whtever % decided by
mgmt
dont give on gross salary SA ASA etc not included

From India, Pune
Thanks Samvedan for your prompt and accurate replies were expected.
You are doing a wonderful job... :-)
I wll now speak to my employer politely and try to convince them for this.
The bonus component was part of my annual package that as offered to me at the time of employment.
I also hope that I will get my right and hard earned money deserved.
I will surely inform you of the outcome.
Thank you so much for you help!
Please let me know if I can help you in any ways.
Regards,
Anshu
From India, Bangalore
Hello Anshu,
Thanks for the offer to help. I will take a rain check!
If someone does a good turn to you, the only way is for you to a good turn to someone else! That's the way of life!! If you keep learning and sharing all your active life you will become a good HR person. I am sure you want to be that.
Even in future if I can help, rest assured that I will-within my area of competence.
Cheers and Good Luck for future.
Regards
samvedan
February 12, 2009
-------------------------
From India, Pune
Yes Samvedan!
You are right! But I am not from HR stream.
I am into IT Project Management and Leading as of now.
Anyways, I really appreciate your promptness to this forum.
Surely in case of any issue in future, I may trouble you.
Regarding this Bonus issue, I have initiated a conversation with my boss and he agreed that Bonus should be dispersed to employees as it is anyone's right. But he is not very sure that I will get the amount concerned.
Anyways, I will fight for my right. Rest is on God! :-)
Thanks much for yur advice because of which I could raise my voice.
Anshu
From India, Bangalore
Dear All,
Your Explanation on Bonus has given me lots of knowledge on Bonus. I respect to all having intension to share knowledge and indirectly giving benefits to others (especially Samvedan). Really I have very few words to admire you all.
Thanking you
Uday,
Cuttack, Orissa
9437833882
From India, Mumbai
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