Bonus Under Payment Of Wages Act'1936 - PDF Download - CiteHR
Madhu.T.K
Industrial Relations And Labour Laws
R.N.Khola
Labour Laws & Ir
Abedeen7
Assistant Manager Human Resources
Arunabl
Service
+3 Others

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Please ,can anybody kindly apprise whether bonus in included in the definition of wages under the payment of wages act’1936 & what is the wage ceiling at present. Thanks Richa
Bonus is not part of wages under any Act. Under the Payment of Bonus Act an employee whose salary exceeds Rs 10000 is not entitled to get bonus. At the same time, bonus of all employees who get salary above Rs 3500 will be calculated as if their salaries were Rs 3500. That means, though the wages ceiling for bonus is Rs 10000, the same will be calculated on a maximum salary of Rs 3500 only. Salary for this purpose will include Basic salary and Dearness Allowance only.
Please note that an amendment is likely to take place in Payment of Bonus Act very soon.
Regards,
Madhu.T.K

Dear Richa, Welcome to CiteHR. This is to inform you that at present the wage ceiling under the Payment of Wages Act, 1936 is Rs. 10,000/- per month. R.N.Khola
Dear Mr.Sahai,
Some Note on Bonus:-
1.Eligibility for bonus.—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 thirty working days in that year.
2.A minimum bonus which shall be 8.33 per cent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher.
3.Year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent, of such salary or wage.
4.Time-limit for payment of bonus.
a.Within a period of eight months from the close of the accounting year
b.where there is a dispute regarding payment of bonus pending before any authority under section 22, within a month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of such dispute

Minimum bonus as per new rule 11% instead of 8.33% I am enclosing circular for your ready reference. Thanks Arun

Attached Files
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File Type: pdf THE PAYMENT OF BONUS (AMENDMENT) BILL, 2010.pdf (76.5 KB, 646 views)

It is not yet notified. Infact it was not tabled in Parliament due to 2G. As of now it is only 8.33%
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File Type: doc Training Content for student.doc (77.0 KB, 213 views)

Dear Mr.Madhu.T.K, Can we pay bonus on monthly bases, if we pay then which date we can show in form D & C Regard’s Himanshu
You can pay bonus in installments. But the entire amount of bonus should be paid within eight months of closing of the financial year. Therefore payment of bonus in monthly installments is not encouraged. Similarly, if you pay it monthly the amount will be treated as part of wages for deciding contribution towards ESI. Remember that bonus (statutory bonus) is a deferred wage.
To Avanti,
Please confirm if the minimum days of work so as to be eligible to get bonus is 30 ( as I understand) or 20 days as you posted.
Regards,
Madhu.T.K

"from the above letest amendment out come is that:-
(1)The wage ceiling of present bonus entitlement is Rs.15,000/- p.m.
(2)The percentage of minimum bonus is increased from @8.33% to @11%.
(3)The maximum of wage ceiling to be calculated is @ Rs.5,000/- p.m.
(4)Any worker must have worked for continous service of minimum of 30 days in a year."

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