Suresh P
Hr Professional
+3 Others

Thread Started by #vasudevan_n

MR Madhu
I have an important discussion on Bonus:
1.Bonus is issued generally on Diwali to employees by the company
2.Bonus issued this diwali is for the immediate preceding financial year. Is it ok
3The management declares a 20% bonus to emplyees.and has been paying a bonus of 43200 for a staff with a basic pay of Rs 18000 and 45600 for a staff with a basic pay of 19000 for more than 3 years
4This year also they declare 20% bonus but one staff who has left the services in june 2011 is asking whether he should get bonus as per point 3 above or a reduced bonus of 8.33%
Pl clarify.Hope the point is clear
Thank you Madhu ! for your verdict in advance
12th October 2011 From India, Madras
yes, he should get bonus if performed his duties for one month. this means if the concerned employee served the organisation for 30 days or more before leaving in june 2011 , he is entitled for bonus
13th October 2011 From India, Mumbai
Dear Mr. Vasudevan
1) Bonus is issued not because or just before Diwali - as per the act it should be payed before completion of 8 months after the financial year. Generally most of the companies opted April - March finance circle, therefore paid by Diwali.
2)Again as per act, bonus should be min 8.33% to 20% max. with a ceiling of Rs. 8400/-. whatever goes above is upto the management decision.
3) As per & within parameters of the Act, they should get. Again getting bonus amt above the ceiling is upto the Management's decision.
14th October 2011 From India, Pune
That is fine Suresh
If the bonus declared is 20% for the staffs on role ,What happens to the person who has left in June.Is he entitled for the 20 % like other employees or restricted to the discretion of the employer and a lesser bonus.
14th October 2011 From India, Madras
If the 20% goes beyond Rs. 8400/-, management can restrict it the ceiling as per the act. And beyond 8400/- is management’s decision.
14th October 2011 From India, Pune
Dear All, I have attached Payment of Bonus Act Amendment in which limit is increase from 8.33% to 11%. With Regards, Vineet Deshmukh
14th October 2011 From India, Yavatmal

Attached Files
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File Type: pdf Payment of Bonus Act amendment 2010.pdf (76.5 KB, 230 views)

I think still it is in proposal format, and not as an amended. starting itself says 'TO BE INTRODUCED IN LOK SABHA'. Regards
14th October 2011 From India, Pune
Still there is a gap in the question and your answer.
The company has declared bonus for all the employees on Roll as 20%.--ok
The employee who is not on the rolls of the company in the current financial year but eligible for a full bonus by virtue of his attendance the preceding financial year will he have the rights for claiming 20% bonus on par with the employee on rolls
or the employer can he isolate him from the 20% bonus group
This is my query but your reply is evading
14th October 2011 From India, Madras
If it is declared as 20% as Bonus then he is eligible for 20% for the attended period proportionately.
If it is declared 8.33 % as Bonus and remaining 11.67% as an ex-gratia or with any other name then he is eligible for 8.33% only.
Hope you got the answer.
14th October 2011 From India, Pune
Yes, an employee is eligible for bonus proportionate to his / her service period in the last financial year.
Employer can isolate left employee by limiting to Rs.8400/-, if his / her bonus goes above that amt.
Hope I have not evaded now!
14th October 2011 From India, Pune
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