R.N.Khola
Labour Laws & Ir
Prasad.sbr
Chief Manager - Hr
Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
Smbhappy
Finance, Hr, Sectarial Practices, Law And
Pradeepullanat
Consultant For Social Compliance, Factory
+6 Others

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Dear Friends, Pl. find attached Bonus amendment bill,2010. Thanks/Rajesh

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Dear Rajesh, Thanks for the information. Can u suggest me some HR magazines / journals from where I can gather such sort of informations along with recent practices in HR. Thanks Amitava 09830990154
You can get these information in Labour Law Reporter, Factory & Labour Law Reporters etc. P K MISHRA
Dear Sir,
Good Morning !
I have a query regarding bonus, our Organization has 5 sisiter concern company in different product. i am working in HR Dept. and i am looking all the HR related work of all the Company. Every year each co. get the bonus/incentive as per profitwise. My question is why i am not included for the bonus/incentive. I will highly appreciate if i can get reply whether it should be implemented to me or not.
Thanks in advance.
Regards

Dear Professionals, Please anyone define bonus act and who is eligible for bonus. I know how to calculate bonus. Waiting for answer. Regards Jeetu Singh Bisht HR-Assistant
Dear All,

Eligibility for Bonus

Section 8 – Eligibility of Bonus

Section 8 of the Payment of Bonus Act, 1965, states that – Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than 30 working days in that year.

The act simply means that every employee who has completed 30 working days in any establishment in that year is entitled to receive bonus from the employer given that all the provisions of this Act are satisfied.

Under this Act, every employee who is receiving salary or wages upto Rs. 3,500 p.m. (amended to Rs. 10,000 p.m. w.e.f. 01.10.2010*) and is 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. However, employees of L.I.C., Universities and Educational institutions, Hospitals, Chamber of Commerce, R.B.I., IFCI, U.T.I. Social Welfare institutions are not entitled to bonus under this Act.

Section 9 – Disqualification for Bonus
Section 9 of the Act provides for conditions under which an employee can be disqualified from receiving a bonus under the Payment of Bonus Act, 1965. The Act states that –

Notwithstanding anything contained in this Act, an employee shall be disqualified from receiving bonus under this Act, if he is dismissed from service for –

a. Fraud;
b. Riotous or violent behavior while on the premises of the establishment; or
c. Theft, misappropriation or sabotage of any property of the establishment.

Thus, if an employee is terminated from his job because of his inappropriate behavior on the establishment’s premises, then such an employee would not be eligible for any bonus.

Section 16 – Special Provision
In case an establishment is newly set-up, the eligibility and payment of bonus of employees would differentiate. The employees shall be entitled to be paid bonus in accordance to the following provisions:

1. In the first 5 years, the employees will be eligible to and shall be paid the bonus of only those accounting years in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this act in relation to that year.

2. For 6th and 7th accounting years, the employees will be eligible to and shall be paid bonus of their respective accounting years including the consideration of set-on or set-off as illustrated in schedule 4.

3. From 8th accounting year, the employees shall be eligible to and entitled to be paid bonus in accordance to the provisions of section 15 (set-on and set-off of allocable surplus) from the 8th accounting year, Section 15 shall be applicable in relation to such establishment as they are applicable in relation to any other establishment.
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* New Delhi, Oct 1 : The Union Cabinet today amended the Bonus Act, 1965, thus raising the eligibility limit for payment of bonus from the salary or wage of 3, 500 rupees to 10,000 rupees per month.

The Cabinet also amended the section 12 of the Act, raising the ceiling for calculation purpose from the salary or wage of Rs.2,500 to Rs.3,500 per month.

Section 32(vi) of the Act has been deleted to cover the employees employed through contractors on building operations.

Dear Surendra,
it is good effort that u reproduce the provisions of Bonus Act, but especially u missed or forget to explain the definition of 'EMPLOYEE', those who are getting salary upto 10000/- are only called as an EMPLOYEE, on the contrary those who are getting more than 10000/-p.m. are not employee under the said act and naturally are not entitled for BONUS.
Secondly, those who are getting salary/wages in between 3500 to 10000
they shall be offered bonus upto 3500/-if employer enjoyed the benefit of the provision.
Regards,
KIRAN KALE

Dear Sir
Can any one provide the "OFFICIAL GAZETTE" in this regard.The mendment is comes under force, only when the OFFICIAL GAZETTE " notification is released. Hence, can any one try to find the "OFFICIAL GAZETTE".
Regards
Prasad SBR

Dear Rajesh, Thx 4 valuable information. Please continue to share the information to the members. Regards. Keshav Korgaonkar
Dear KIRAN KALE

It was stated in my post that

"Under this Act, every employee who is receiving salary or wages upto Rs. 3,500 p.m. (amended to Rs. 10,000 p.m. w.e.f. 01.10.2010*) and is 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. However, employees of L.I.C., Universities and Educational institutions, Hospitals, Chamber of Commerce, R.B.I., IFCI, U.T.I. Social Welfare institutions are not entitled to bonus under this Act."

It very clearly define the "employee".

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Dear Prasad SBR

Parliament has passed the bill. The effective date is 01 October 2010. The Notification will be uploaded as and when issued.


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