two persons A and B have salaries of Rs.8000/- each. A earned Rs.96000 and B earned Rs. 48000/- (he attended work every month but was absent from work almost 15days a month due to ill health of family members) in a particular year. The company has declared 15% bonus for that year. Since both have earned more than 42000/- will both get 15% of 42000/- (6300/-)or will A get 6300/- and B 3150/-.?. Thanks
From India, Madras
From India, Madras
Loss of pay in this case (where salary exceeds Rs 3500) is proportionately deducted from the bonus eligible salary and therefore, A will get Rs 6300 whereas B will get Rs 3150 only.
Regards,
Madhu.T.K
From India, Kannur
4193Regards,
Madhu.T.K
From India, Kannur
Thank You for your clarification. Certain Trade Unions have been advising their members that irrespective of the number of days worked the bonus will be calculated on the net amount earned if it is in excess of 42000/- This was personally told to me by the secretary of a union. I refuted this saying it is against common sense and cannot be true.But he persisted saying there is a judgement but he is yet to show this to me. I also added that Judgements are often quoted out of context and the Higher Courts have passed severe strictures on Lower Courts for passing absurd judgements.
My intention in posting this is to bring such disputes to the attention of readers who can benefit from the valuable clarifications offered by you. Thanks.
From India, Madras
My intention in posting this is to bring such disputes to the attention of readers who can benefit from the valuable clarifications offered by you. Thanks.
From India, Madras
Dear Mr.Gopalen
While agreeing with Mr. Madhus's post I am enclosing a file on Payment of Bonus Act, wherein I have marked the specific class with "Blue".
Hope this will satisfy your requirement.
Note: Certain limits on the above files are to be updated as per the latest notifications.
Regards
Balamurugan Sivaprakasam
Head- HR
ICIL-MM Nagar
From India, Madras
While agreeing with Mr. Madhus's post I am enclosing a file on Payment of Bonus Act, wherein I have marked the specific class with "Blue".
Hope this will satisfy your requirement.
Note: Certain limits on the above files are to be updated as per the latest notifications.
Regards
Balamurugan Sivaprakasam
Head- HR
ICIL-MM Nagar
From India, Madras
Today we received a copy of a judgement from the union. Now based on this Union is claiming th the bonus will have to be paid on the 42000/ and not the proportionate wage if the net earnings of Basic abd Da exceed 42000/-. The Ref is WA No. 1043/1996 2001-I-LLJ. The matter pertains to Simpson & Co.. The CMP NO is 15475/1996. I do not see the word proportionate used in any of the arguments or the Judgement. Pl advice.
Regards
Gopalen
From India, Madras
Regards
Gopalen
From India, Madras
Dear Gopanen,
I have not seen the judgement but I understand that it will be prejudicial to pay the same amount of bonus to two persons, one of whom has worked only for the half of the days than the other just because that his salary is higher than the qualifying salary.
If you could send the judgement, it would be of much help to all of us. Please attach the same for our record.
Regards,
Madhu.T.K
From India, Kannur
I have not seen the judgement but I understand that it will be prejudicial to pay the same amount of bonus to two persons, one of whom has worked only for the half of the days than the other just because that his salary is higher than the qualifying salary.
If you could send the judgement, it would be of much help to all of us. Please attach the same for our record.
Regards,
Madhu.T.K
From India, Kannur
I have a xerox of this and that too in tiny letters. I will try and attach a photographic copy.
From India, Madras
From India, Madras
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf