Hr & Administration
Hr & Compliance Manager
Recruitment, Induction, Handling Grievances,
Assistant Engineer, Indian Telephone Industries,
Manager (personnel & Administration)
Recruitment & Training Manager
1.There is no minimum salary for Bonus. But minimum payment for 1 year is Rs. 100
2. For Bonus coverage, maximum monthly salary is Rs. 10,000.
3. Mainly Basic+Da is taking as salary.
4. Allocable surplus has to be distributed among the eligible employees. The lower ceiling is 8.33% and upper ceiling is 20%. This is statutory and called Bonus payment. If the employer give additional payment other than statutory or payment to employees above the coverage limit, it may be called as ex-gratia. Please note that Bonus is mandatory and ex-gratia is optional.
5. Statutory percentage is from 8.33% to 20%, detailed in answer number 4
6. Allocable surplus is 60% of available surplus, for Banking institutions. For companies it will be 67%. 8.33% is the percentage form of 1/12 & is equal to one month salary (for one year). Accordingly 20% is 2.4 month salary.
If the allocable surplus is not sufficient to pay 8.33%, balance amount is to be adjusted from the next four years, which is called as Set Off. And if the allocable surplus is more than sufficient to pay 20%, balance amount is to be carried forward for the next four years, which is called as Set On.
11th October 2010 From India, Bangalore
Thanks you very much for your eply. It is cleared my long time doubs....
Usually i will get alert in my mail ID if anyone replied to my question in Cite HR but this your reply alert i dnt get. Do u have any idea about this please let me know how to enable this facility. email@example.com
11th October 2010 From India, Hyderabad
11th October 2010 From India, Mumbai
1. There is no minimum salary limit for bonus eligibility.
2.The maximum salary limit is Rs.10000/-
3. Basic + DA is considered for computing Bonus. If Basic + DA exceeds Rs.10000/- then he is not eligible for bonus. However there is a wage ceiling of Rs.3500/- for payment of bonus. If an employee draws Rs.3500/- or more upto Rs.10000/- then his wage should be deemed as Rs.3500/- only. In other words if he draws Rs.4000/- his wage will be Rs.3500/- only for computation of bonus. If he draws less than Rs.3500/- say Rs.3400/- then the wage will be Rs.3400/- for computation of bonus.
4. The minimum % of bonus is 8.33% of annual Basic + DA and the maximum % is 20%.
5. As per bonus act the maximum bonus that a person can earn is Rs.8400/- per annum i.e Rs.3500/- X 12 = Rs.42000/- @ 20% = Rs.8400/-.
6. Ex-gratia is something that the management is willing to give voluntarily even if the employee is not eligible to receive bonus. The employer may not impose the wage ceiling of Rs.3500/- and may be willing to pay on the actual earnings of the employee even if it exceeds Rs.3500/-. He may also be willing to pay bonus if he exceeds Rs.10000/-.
Trust the matter is clarified.
12th October 2010 From India, Madras
I have a query.If the salary (Basic + DA ) of an employee is 3300 per month then bonus will be calculated on 3300 or on 3500 min.as mentioned in Check list of labour laws(attached herewith).
Please clarify the calculation part.
Thanks & Regards,
12th October 2010 From India, Lucknow
Ans :- There is no minimum salary for calculaltion of bonus. But there is maximum salary i.e BASIC+DA upto 10,000/- are entitle for bonus. Minimum Bonus Rs. 100/- should be paid.
2. What is the Maximum limit for bonus eligibility
Ans :- BASIC+DA upto Rs 10,000/- and below
3. what are all emoluments considered for Bonus eligibility calculations.
Ans :- BASIC+DA
4. What is the difference between Bonus and EX-Gratia
Ans :- Amout which is paid over and above the bonus is call Ex-Gratia. Bonus is a lawfull binding on employer but ex-gratia is employer wish to pay over & above of minimum or maximum bonus
5. What is the statutory presentage of bonus to be given?
Ans :-Minimum 8.33% & Maximum 20% (on BASIC + DA)
6. Any other details can be useful to me regarding bonus. please post
Ans :- Refer The Payment of Bonus Act.
12th October 2010 From India, Pune
1. (to Coolchini) If salary is above Rs. 10,000, he is not eligible (as statutory) for bonus.
2. (to Neelam) Salary ceiling for Bonus payment is Rs. 3,500. i.e Actual salary or Rs. 3,5000 whichever is less, will be taken for calculation. In this case it is Rs. 3,300.
12th October 2010 From India, Bangalore
Please note: the ceiling amount for calculation of Bonus has been enhanced from Rs3500 to Rs5000 and percentage limit has been increased from 8.33% to 11%. This is latest amendment. For this purpose I am attaching herewith the copy of amendment.
12th October 2010 From India, Chandigarh
The two queries raised are answered below
1. What will be the bonus amount if the employee draws more than Rs.10000/-?
He is not eligible to receive bonus as per Bonus Act as on date but if the company wishes then it can pay him ex - gratia in line with the bonus act i.e wage ceiling of Rs.3500 X 12 X Bonus percentage (Between 8.33% - Minimum Bonus and 20% - Maximum Bonus).
2. What will be the bonus amount if the employee draws less than Rs.3500/-?
It will be the actual amount earned by him if it is Rs.3400/- then consider only Rs.3400/-
Trust the matter is clarified
13th October 2010 From India, Madras
I have a query regarding payment of my bonus / Ex-gratia, please have a look on below details for the complete insight of my case;
I have joined an organization on 16th Jan 2008 and place my resignation from the services of this company on Dt. 18th Sep 2010 and my last date was in this company was 15th Oct 2010.
At the time of my joining my Basic salary was Rs.13000 / month and last drawing of basic salary was Rs.14560 / month. During my working in this company, this company announced the Ex-gratia in Oct 2008 (On Deewali) FY 2008-2009, but I did not receive the same due to I did not complete 12 calendar months at the time of Ex-gratia distribution.
Again in Nov 2009 (On Deewali) FY 2009-2010 this company announces the ex-gratia and I received the same because of completion of 12 calendar months at the time of distribution.
And now this company has announced the ex-gratia in Oct 2010 (On Deewali) FY 2010-2011.
I want to know, will this company give me Ex-gratia in my full and final settlement as I have completed 33 calendar months till my last date in this company.
Can I legally force this company for the payment of ex-gratia?
K. K. Gupta
26th October 2010 From India, Delhi
u wrote that u were receiving basic salary more than 10000/- p.m. So, it is very hard 4 u to receive the amount of ex gratia bcause ex gratia payment is not mandatory and general practice is no payment of ex gratia shall be given to those who left the services, u will be lucky if u get it. Do not try to force them but to request them 4 ex gratia as u had work during the accounting year.
27th October 2010 From India, Kolhapur
Gratuity is nothing but retirement benefit to employees ( In very simple word). To avail this benefit employee has to work minimum 5 years continuously. If an employee expired/left/separated at anytime within 5 years then he will not be eligible for gratuity.
20th April 2011 From India, Pune
I am joined company in 1997 and left from them 2005 due to company sold by owner to other, But before he take charge we resigned from the company and he is not pay my superannuation. My Ex company (from myself left) that due comany is sold that ex. company is not liable to pay superannuation.Even may leave salary also not pay by company.
Can i take any action for receiving superannuation and leave salary
15th June 2011 From India, Jaipur
Now my question is that on which sealing I need to calculate bonus?
on Rs 7000 or on Rs. 6240?
can anyone help me?
26th April 2016 From India, Bhopal
When the employer unable to pay the salaries for workmen, how can he may be in position to pay bonus. Is there any law stating that he may take the relaxation for not paying bonus.
in this connection i appreciate if any body clarify with suitable legal position
27th October 2016 From India, Visakhapatnam