Kannanmv
Hr & Administration
Lovlyamar
Hr & Compliance Manager
Coolchini
Recruitment, Induction, Handling Grievances,
Anil Parmar
Personnel Side
Abbasiti
Assistant Engineer, Indian Telephone Industries,
Rajendra Bhavsar
Manager (personnel & Administration)
Renusuman
Recruitment & Training Manager
+13 Others

Thread Started by #senthilhriil

Dear Friends,
Can you please clarify me about Bonus calculations;
1. What is the minimum salary for bonus eligibility
2. What is the Maximum limit for bonus eligibility
3. what are all emoluments considered for Bonus eligibility calculations.
4. What is the difference between Bonus and EX-Gratia
5. What is the statutory presentage of bonus to be given?
6. Any other details can be useful to me regarding bonus. please post
Thanks
Senthil D.
10th October 2010 From India, Hyderabad
Dear Senthil,

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.

Abbas.P.S
11th October 2010 From India, Bangalore
Dear Mr. Abbas,
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. senthil@indimmune.com
Thanks
Senthil D.
11th October 2010 From India, Hyderabad
The statutory limit for computation of bonus maximum salary is to be considered as Rs. 3500/- i.e. ceiling for calculation of bonus. For example any body drawing salary more than Rs. 3500/- his salary for calculation of bonus will be considered as Rs. 3500.
Regards
Rajendra Bhavsar
11th October 2010 From India, Mumbai
Dear Senthil,

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.

M.V.KANNAN
12th October 2010 From India, Madras
Please note: the ceiling amount for calculation of Bonus has been enhansed from Rs3500 to Rs6500
12th October 2010 From India, Bangalore
if second day from date of joining employee was expired on duty. In this case employee eligible for gratuity ? if yes please provide calculation detail. if no, why ? Thanks Managobinda Behera
12th October 2010 From India, Valsad
Hi Mr. Kannan,
I've a query: if the basic of an employee exceeds Rs.10,000/- then will he be eligible for Bonus and if yes what will be the amount?
Awaiting your reply.
Thanks and regards,
coolchini
12th October 2010 From India, Mumbai
Dear Friends,
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,
Neelam Nailwal
12th October 2010 From India, Lucknow

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1. What is the minimum salary for bonus eligibility
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
Dear Coolchini & Neelam Nailwal,
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.
Abbas.P.S
12th October 2010 From India, Bangalore
Re: Bonus Eligibility and other details
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.
Anil Parmar
12th October 2010 From India, Chandigarh

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File Type: pdf Payment of Bonus Act Amendment.pdf (629.9 KB, 585 views)

Dear Anil Parmar, The above amendment is not enacted yet. The bill will only come into force after passing by both houses of Parliament. We have to wait till then. Abbas.P.S
12th October 2010 From India, Bangalore
Dear All,
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
M.V.KANNAN
13th October 2010 From India, Madras
Dear Senthil D. I wish to keep silent as my dear friends Abbas, Kannan are on right track and there is no additional to write down, so, follow them and enjoy bonus act at ur end. Regards, KIRAN KALE
13th October 2010 From India, Kolhapur
A employee is eligible for bonus only if he has worked for more than 30 days in a year other points have already been answered
15th October 2010 From India, New Delhi
Dear Ranganath Magge, You have mentioned that minimum attendance for bonus eligibility is more than 30 days in a financial year. But more than 30 days is not mandatory, 30 days will do. Abbas
15th October 2010 From India, Bangalore
Regards There,

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?

Best Regards

K. K. Gupta

9312127116
26th October 2010 From India, Delhi
Dear K.K.Gupta,
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.
Regards,
KIRAN KALE
27th October 2010 From India, Kolhapur
Dear Mr Managobinda Behera, No. As per gratuity rule an employee has to work continusely 5 years in one organisation then only he is eligible for gratuity. Thanks Senthil D.
28th October 2010 From India, Hyderabad
Dear Mr Managobinda Behera,
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.
Regds
Santosh Khamitkar
20th April 2011 From India, Pune
dear abbasti My salary omn hand is 28000 and company pay to me bonus 8000/- per year.So how can possible to not pay to bonus to the person to receive more that 10000/= Kindly confirm Thanks Manoj
15th June 2011 From India, Jaipur
Dear Sir,
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
Thanks
Manoj Saxena
9982693820
15th June 2011 From India, Jaipur
A company established in 2005 and made the joint venture with one europen company in Jan 2008. Please let me when this company is entitle for bonus payment.
21st September 2011 From India, Mumbai
Dear Sir
Suppose employee drawing Basic Salary 15000/- Per month then he can be eligible for bonus Or Ex gratia
And what is cretiria for exgratia calculation ? can you suggest
Regards
Jagan Sonawane
9892109647
8th October 2011 From India, Mumbai
I want to know if company has started giving Bonus to his employees drawing more than Rs 6500/- or Rs 10000/-, can I stop them now as I was not aware of this fact or they may oppose. Rajesh Chadha
21st September 2012 From India, Delhi
Dear all, Please find the attached "Payment of Bonus Act. 1965" in pdf. here u can find ur query and hope it will help u. best regards, Amar
18th January 2013 From India, Delhi

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File Type: pdf payment_of_bonus_act_1965.pdf (86.1 KB, 106 views)

The bonus ceiling limit increased from Rs 3500 to Rs 7000. In my organization the basic of some employees were less than Rs. 7000 (i.e. 6240) in the finalcial year 2015-2016.
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
Dear Seniors, Kindly clarify me that, What is the eligibility period of work of an employee to avail the Diwali Bonus according to our act? kind regards Renu
12th October 2016 From India, Coimbatore
Dear Team
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
With regards
Santosh Kumar
9347071777
27th October 2016 From India, Visakhapatnam
Dear experts, is professional tax applicable for bonus. If applicable how to calculate and pay the same to the department.
27th October 2016 From India, Bengaluru
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