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Siva Sankar
Dy. Manager - Hr & Admn.
Assistant Engineer, Indian Telephone Industries,
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Senior Manager-hr, Er & Admin
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Harsha Shetty
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Thread Started by #mahesh33chimanbhai

Dear All,
I want to know that if the bonus limit is 3500Rs.(Basic+Da) if any employee work in our organisatiohn whose attandence is 18 days but his basic+d.a. is more than 3500 Rs. thn how to calculate the bonus. is we calculate on the basic of days (i.e. 3500 rs is for 30 days than how much for 18 days...) of we have to calculate on the basic of limit.. tell me asap.
14th October 2010 From India, Surat
Dear Mahesh,
There is a latest ammendments happned in Bonus Act 1965 as per the ammendments The payment of Bonus Bills (2010) minimum bonus which is 8.33%shall be taking the max. salary or wage as Rs. 3500/-. The existing provisions are not adequate in the present scanario of the rising inflation.
The calculaton ceiling of bonus from Rs.3500/- to Rs.5000/- and enhance the minimum bonus payable from 8.33% to 11% of the salary or wage earned by the employee during the FY for which the bonus is being paid.
And a employee who has completed 30 days (i.e. if DOJ is equal or less than of
2nd March' 10) in any Accounting Year (2009-10) is eligible for bonus. And accordingly calculate the bonus for such cases but remember the ceiling of minimum bonus Basic+DA limit will not be higher than 1.20 pa
14th October 2010
hi, can you pls tell me the when we have to submit bonus return? if it is of financial year than why companies submit it after sep
14th October 2010 From India, Delhi
Dear Ready,
We have to submit the bonus annual returns on or before 30 dec. and second things that bonus have to be paid within eight month of after complitation of the financial year so we have to submit the return on or before the dec.
14th October 2010 From India, Surat
As per the Payment of Bonus Act & Rule 1965 , every employer has to send annual return inform D with 30 days from the ending of that particular accounting years. Accounting year starts from April to March.
14th October 2010
Dear Dinesh,
I have some queries.
I think, the bill for Bonus Amendment 2010 is being passed in parliament but it has not got the approval by ministary and it is under consideration. After approval, the act will be amended accordingly and then only it will be effective with the declared date.
Because yet it has not being declared.
If I am wrong, please correct.
14th October 2010 From India, Sholapur
Coverage of an employee under Payment of Bonus Act is Rs 10,000/-( Basic +DA). it means who are getting Basic + DA < Rs 10,000/ shall be eligible for payment of bonus. the calculation is always done on actual basic +da, or if basic +da is more then Rs 3500/-, still the calculation will be done on Rs 3500/-. i.e 8.33% of Rs 3500/-.
Now on your question if an employee have worked for 18 months in a particular month, there is loss of pay of 12 days. he got 18 days salary. If his this 18days salary is more than Rs 35,00/- in this case also it will be calculated on 3500/- but if his 18 days salary is less then on actual salary.
Hope satisfy you.
14th October 2010
Dear Mahesh, The Bonus Amendment Act 2010 enhancing coverage limit to Rs. 15000, payment limit to Rs. 5000 & minimum to 11% are not enacted yet. As per the existing norms, the ceiling salary limit for bonus payment is Rs. 3500. If he has not full attendance, it can be calculated on pro-rata basis. For e.g, if some one has 6 months attendance and has an eligibility of minimum bonus, 3500x6/12 = 1750 is to be paid. However in a financial year minimum 30 days attendance is required for statutory eligibility. . . . . . Abbas.P.S
14th October 2010 From India, Bangalore
Hi my self rao, I have one minor doubt i.e. Bonus act is applicable to all over india right ??? or we have any sepreate act for each and state. Clarify my doubt. Bye regards, Rao
14th October 2010 From India, Hyderabad
Dear Professionals,
we don't encourage spoon feeding. However, since these are days of bonus and allied issues,this time you are being helped.
Please read payment of Bonus Act,1965. Under the title qualification for Bonus. It provides that a worker is entitle for bonus provided he has worked for atleast 30 days during the concerned accounting year. Hence in this case, he is not at all entitled for receipt of bonus.
14th October 2010 From India, Nagpur
Dear All,
Answer to Mr.Rao's query : Bonus act is Central Act and is applicable throughout India.
Answer to Mr.Mahesh query : If the employee is drawing a salary exceeding Rs.3500 but less than Rs.10000/- he is eligible to receive bonus but considering the wage limit as Rs.3500/-.
But if the employee is on Loss of pay.
Deduct the Pay equivalent (LOP) from the Basic + DA and if this figure hovers between Rs.3500/- and Rs.10000/- consider that he has earned Rs.3500/- (Wage ceiling)
But if the figure is lower than Rs.3500/- say Rs.3400/- then consider it as Rs.3400/-
In other words do not consider the Wage ceiling (Rs.3500/-) for computing the earned Wages.
15th October 2010 From India, Madras
Dear kvrao
you are right that bonus act applicable to all over India , same act also to applicable all states except state jammu & kashmir.
Amol Deokar

asst. manager HR
15th October 2010 From India, Mumbai
Dear All,
I am attaching bonus calculator which has formulae in the exel sheet. All that you need to do is to put the monthwise attendance and the actual salary details.the formulae will do their job.The formulae will have to be suitably changed with the new amendments coming in force.Hope you all find the same useful.
15th October 2010

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Hi, As per Bonus act if the employee is not present for at least 30 days in yr., then he is not liable for the Bonus. regards Madhura.
15th October 2010 From India
To: Dear Mahesh and all others who have posted their replies,

There seem to be so much of half understanding on the Bonus issue:

Please note the following points :

1. Bonus is payable for the accounting year Apr to Mar. For 2010, bonus is payable for Apr'09 to Mar'10 before Nov'10.

2. Returns have to be submitted by 30th Dec'2010

3. 8.33% of the wages - Basic + DA earned by the employee during the financial year is payable as Bonus

4. All employees, whose basic + DA is Rs.10,000 and below are eligible for bonus

5. The maximum bonus payable is Rs.3500/-.

6. If an employee's wages (basic+DA) is more than Rs.3500/-, for calculating bonus only Rs.3500/- to be taken as wages (but eligibility for paying bonus is Rs.10,000/-)

7. Employees who have worked for minimum 30 days are eligible. If less than 30 days, they are not eligible for bonus

8. Bonus Act is a central Government Act and is applicable all over India

9. There is no amendment to Bonus Act to pay more than Rs.3500/- or more than 8.33% as of now



15th October 2010
Dear Friend,
As per the calculation of bonus only those employee is covered who has work for 30 days in an organisation and there salary(Basic+D.A) is less then 10000. As per the bonus policy minimum bonus payable is 8.33% and maximum 20% of the Salary(Basic+D.A) i.e. on 3500/-
For the calculation of Bonus:-
Suppose any employee join an organisation and his salary(Basic+D.A) is less then 10000 then for bonus calculation consider the salary(Basic+D.A) Rs.3500/- , Now organisation decided to give 20% bonus then for one month bonus is 3500*20%=700
if any employee work for 15 days in a month july then there calculation is
3500*15/(total days of month)*20%=Rs.339
for the detail plz find the attachment.
15th October 2010 From India, Delhi

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File Type: xls Bonus_Calculation.xls (25.5 KB, 575 views)

Dear Mahesh
first of all you are not legally forced to give bonus as the employee has not workned for whole month, if you want to give bonus then you have to give on earned basis i.e. 3500/30X18= 2100 the percentage as declered by management say if the % is 10% then the bonus amount will be 210/- Hope this will satisfy you
15th October 2010 From India, Indore
Hi, How to calculate bonus,if a person has worked for 10 months in an organisation and his salary is Rs.6000
16th October 2010 From India, Bangalore
Dear Pavithra, tell which is ten month is it in financial year if yes than bonus is calculated on the basis of 3500* 8.33% or 20% * 10 month . Regards, Mahesh
16th October 2010 From India, Surat
Relex guys. The proposed Bonus Amendment Bill is a private bill No. 15 of 2010, introduced by a MP. Normally, MPs introduce private bill being theri privelege. Such bills are normally withdrawn after the reply of the concerned minister. I think in this case also, it is unlikely to become act as of now.
16th October 2010 From India, Bhubaneswar
Dear Mahesh,
The Bonus Amendment Act 2010 enhancing coverage limit to Rs. 15000, payment limit to Rs. 5000 & minimum to 11% are not enhanced yet. As per the existing norms, the ceiling salary limit for bonus payment is Rs. 3500. If he has not full attendance, it can be calculated simply by 3500xbasicdax 8.33%.. He may present any number of days at least min of 10 day's.
16th October 2010 From India, Delhi
Dear Kannan,
The ceiling monthly salary for bonus coverage is Rs. 10,000 and for bonus payment is Rs. 3500. Monthly salary is meant for one month. i.e if the salary is in between Rs. 3500 and Rs. 10,000 and the attendance is below one month, calculation will be on pro-rata basis on Rs. 3500 only (not on actual salary).
For e.g, An employee with a salary of Rs. 6000 has worked for 15 days out of 30 days in a month, his entitled salary for bonus payment for that particular month is 3500 x 15/30 = Rs. 1750.
17th October 2010 From India, Bangalore
Dear All, Pls let me know, If i want to pay bonus, from which month to which month I need to consider for payment of bonus and when I should pay the bonus? Regards Venu
17th June 2011 From India, Bangalore
Dear Venu,
Bonus is to be paid for wages earned by an employee during the accounting year as defined under section 2(1) of the Payment of Bonus Act, 1965 & this is to be disburse with in eight months from the close of the accounting year.


18th June 2011 From India, Delhi
Dear Seniors
I come across some problems, please clear it.
A employee salary as follow.
Gross salary - 12000 /-
Basic - 5500 /-
and he is working in staff.
will he eligible to get the bonus.
if yes,
lst,s confirm me what % and on which amount we calculate the bonus.
15th July 2011 From India, Dehra Dun
Hi Self ashok Is it a statutary compliance to put Bonus in CTC if the pay scale is more than 3500/ Please do clarify this point please Regards
9th August 2011 From India, Gurgaon
dear all of you please let me know Tell me know late submit of pf & e sic return which % with regards Pankaj lall
22nd September 2011 From India, Delhi
Dear Ashok, In my opinion none of the enactment asks us to put bonus payment in CTC. Moreover bonus percentage is declared by the management after the close of the accounting year. R.N.KHOLA
24th September 2011 From India, Delhi
i am not clear about this bonus act. if the employee whose basic + DA is above Rs.10,000 then what should we do. is he not included in the act?
14th October 2011 From India, Vadodara
Dear All, If our salary is less then 3500 and basic is 3000 then we can calculate bonus according to 3000 or 3500. pls rply me. Vibs
22nd October 2011 From India, Shimla
Dear Member,
Welcome to CiteHR.
If the salary or wages of an employee exceeds Rs. 10, 000/- per mensem as defined at section 2(21) of this Act then this employee will not be covered under the definition of employee as provided at sec. 2(13) for getting any benefit under this Act. Hence he is not eligible for getting bonus from his employer under this P B Act of 1965.

23rd October 2011 From India, Delhi
Dera Vibs,
Welcome to CiteHR.
If the salary or wage of an employee is upto Rs. 3500/- per month as defined by sec. 2(21) of this Act then he will be eligible to receive bonus from his employer on his actual salary or wages as per this definition.

23rd October 2011 From India, Delhi
The same bonus act is applicable for all over india. There is no saperate act for individual state. We need to keep Max. Rs. 3500/- as ceiling while calculating the bonus.
As such there is No new ammendment has been passed by the government.
Harsha Shetty
28th October 2011 From India, Bangalore
Dear All,
When i was being interviewed by HR Manager of Intas Pharmaceutical Ltd, i was being told that bonus to be paid by keeping allocable surplus in mind, and some company follows diff method all to gather.
Bonus is being paid on basic, 8.33%*12 comes to one salary, though it is paid only to those earning below 10,000/- P.M .
then how the people earning 25,000/- gets the bonus?
please explain me the same.

you can send me the detail on the mentioned email id.
11th July 2012 From India, Ahmadabad
The Payment of Bonus Act, 1965

Objective of the Act : Until the Payment of Bonus Act was promulgated, bonus was linked to profits

meaning that if an establishment did not make profits in a certain year, the employer was not liable to pay bonus.

But the present Act however makes the employer liable to pay bonus to an employee as an annual statutory payments

irrespective of the existence of profits.

Applicability of the Act

The Act includes all employees, factory workers or clerical staff or executives, drawing wages or salary up to

Ten Thousand rupees per month, who perform any skilled, unskilled, manual, supervisory, managerial, administrative,

technical or clerical work.


To become eligible for bonus every employee must have worked in the establishment for not less than 30 working days

in the relevant accounting year.

Bonus is not payable

On subsistence allowance paid to an employee during the period of his suspension, since such employee did not

actually perform any work. Bonus can be forfeited if dismissal is for riotous behavior

How much Bonus Payable

A minimum of 8.33% of wages actually earned during the accounting year, subject to a minimum of 100 rs,

is payable to each eligible employee irrespective of profit or loss. The minimum amount payable is limited to

20% of the wages.

What components of wages shall be considered for calculation of Bonus:

Wages / Salary are understood to be basic pay and VDA & excludes any other allowance.

When the salary or wage of an employee exceeds Rs.3500/-per month, the Bonus payable for such employees shall be

calculated as if his salary or wage were only Rs.3500/- pm (but eligibility for paying bonus is Rs.10,000/-)

When is Bonus Payable

The Bonus is payable within a period of 8 months from the close of the accounting year. Where there is a dispute

regarding payment of bonus, it becomes payable within a month from the date that the award becomes enforceable

or the settlement comes into operation.


Presumption of Accuracy: (Section 23)-----Accuracy of the balance sheet and profit and loss statement of the

establishment is presumed under the Act if they are duly audited by qualified auditors. If however the Arbitrator

or Tribunal hearing a dispute is not satisfied with the accuracy or if any trade union or employees being parties to the

dispute demand clarification of accuracy, the employer shall comply with the demand.

If the authority requires auditing of accounts of an employer, not being a company, such as that of a proprietary concern

or a partnership firm, such employer shall comply with the requirement within such time as directed, at his own



The gross profits derived by an employer from an establishment in respect of any accounting year shall---

(a) in the case of a banking company be calculated in the manner specified in the first schedule;

(b) in any other case, be calculated in the manner specified in the Second Schedule.
11th September 2012 From India, Mysore
Dear Seniors,
As per the act section 2 (21) Salary or wage means all remuneration (Other than Over time work) capable being expressed in terms of money which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment including DA but done not include (i) any other allowance which the employee is for the time being entitled to;
please let me know what are the allowance not included in wage or salary, as it is not clear what are the allowance to exclude.
for example, if an employee is drawing a salary of Rs.18000/- and the breakup is as follows:
Basic + DA : 10000/-
HRA : 5000/-
Conveyance: 800/-
LTA : 833/-
Medical: 833/-
Spl Allowanace:534/-
for bonus eligibility we have to consider only basic + DA or total gross salary.
Please clarify me.
Thanking you,
Siva Sankar
18th August 2014 From India, Calcutta
Lok Sabha passes Bonus Bill; benefits to accrue from April 2014

The Lok Sabha on Tuesday passed a bill allowing doubling of wage ceiling for calculating bonus to Rs 7,000 per month for factory workers with establishments with 20 or more workers, with the benefits being applicable retrospectively from April 2014.

The Payment of Bonus (Amendment) Bill, 2015, was passed by a voice vote, with some members objecting to the raising of eligibility limit for payment of bonus from a salary of Rs 10,000 per month to Rs 21,000.

Replying to a debate on the legislation, Labour Minister Bandaru Dattatreya said the Government has ensured that the interest of workers are protected and there is no infringement on their rights.

"Because of Bihar Elections this bill got delayed... The Prime Minister spoke to me and asked why should the benefits of this Act should accrue to workers from 2015. It should be made available from the April 2014," he said while moving an official amendment to the Bill.

The official amendment provides that the benefits of the Act would be deemed to have come into force on April 1, 2014, instead of April 1, 2015. Dattatreya said the Ministry has held 21 tripartite meetings with all central trade unions while arriving at a decision.

The Bill provides for enhancing monthly bonus calculation ceiling to Rs 7,000 per month from the existing Rs 3,500. It also seeks to enhance the eligibility limit for payment of bonus from Rs 10,000 per month to Rs 21,000 per month.

"The Government's paramount intention is to safeguard the interest of workers... There is no infringement of workers' rights and whatever the government does will be in the interest of workers," Dattatreya said.

After the bill was passed, Deputy Speaker M Thambidurai, who was in the Chair, said the government should be congratulated for bringing the measure as also for effecting the benefits retrospectively.

Terming the legislation as historic, Dattatreya said the outgo from government coffers would be about Rs 6,203 crore.

The Minister said the Bill would benefit crores of organised sector worker. He said unorganised sector constitute 93 per cent of the workforce or about 40 crore people.

Participating in the discussion, Mumtaz Sanghamita (TMC) said "it will benefit vast majority of poor workers. Bonus is the thing which is extra and over regular pay". She, however, wanted to know whether the increase in ceiling was commensurate to the inflation rate.

M Srinivas Rao (TDP) observed that labour laws in India were very weak and government should ensure safety and security for workers.

K Visheweshwar Reddy (TRS) said the sharp cut off of Rs 21,000 per month was flawed and added that contractual workers in factories are overworked and underpaid.

Sankar Prasad Datta (CPI-M) too echoed similar views saying that Rs 21,000 per month ceiling should not be there. Jaiprakash Narayan Yadav (SP) said there should be a special provision for women workers while providing bonus.

Prahlad Singh Patel (BJP) asked the government to fix a minimum ceiling and not the maximum one. "We can also think of linking it with the Pay Commission, so that we do not have to come again and again to Parliament to make changes". He said bonus should not be linked to profit or losses.

The Payment of Bonus Act, 1965, is applicable to every factory and other establishment in which 20 or more persons are employed on any day during an accounting year. The last amendment to the eligibility limit and the calculation ceiling was carried out in 2007 and made effective from April 1, 2006.

This amendment in the Act to increase wage ceiling and bonus calculation ceiling was one of the assurances given by the Centre after 10 day central trade unions went on one-day strike on September 2.
24th December 2015 From India, Kolkata

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