One of my friends was working in a company for a consolidated pay of 15,000 per month. His salary was not bifurcated as Basic, D.A., HRA, etc. The management did this only to escape from PF & ESI. Now he has resigned. Is he eligible for a bonus from his employer? Please share your opinions.
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Hareesh HRM
From India, Kochi
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1Regards,
Hareesh HRM
From India, Kochi
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Those bifurcation for PF was done that has to be considered for Bonus eligible salary also. And if he falls below 10,000/- p.m., then eligible for bonus whey payable for 2012-13.
From India, Ahmadabad
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From India, Ahmadabad
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As his salary is not bifurcated , though consider his monthly salary is Rs.15000/- according to law, he is not entitle to get bonus, as the
From Singapore
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From Singapore
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Dear Friend His not entitle for bonus, as per law Rs. 10000/-.
From India, Kolkata
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From India, Kolkata
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Dear Friend, As per law his gross salary is more than 10,000/- so he is not eligible for bonus. Mahesh
From India, Pune
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From India, Pune
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In accordance with the Bonus Act of 1965, those whose Basic + D.A. is less than or equal to Rs. 10,000 per month will not be eligible for a bonus. Since his salary has not been reduced and exceeds Rs. 10,000 per month, no bonus would be expected from his employer.
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From India, Visakhapatnam
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Thank you.
From India, Visakhapatnam
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Dear Seniors, If the company pays consolidated pay to avoid pf and esi, how will they calculate gratuity. Kindly enlighten me on this. Regards K Lakshme Devi
From India, Pondicherry
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From India, Pondicherry
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If the salary/paycheck is consolidated, then the gratuity will be counted on the gross pay only, as there is no Basic to be calculated. An employee who completes 5 years of continuous service in the establishment is entitled to Gratuity as per the Gratuity Act of 1972. Gratuity can be calculated as 15 days of salary entitlement for each completed year of service, which is calculated as 15/26 X Basic=DA X No. of years of service. This means only 26 days in a month are calculated for gratuity.
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From India, Visakhapatnam
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Thank you.
From India, Visakhapatnam
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Where no break up of salary is there, the entire salary is considered as basic all computation will be done on that basis.
From India, Mumbai
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From India, Mumbai
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Clarification on Bonus Act Amendments
According to the latest amendments of the Bonus Act 1965, the minimum bonus percentage has been raised from 8.33% to 11%, and the maximum to 20%. The salary limit has increased from ₹10,000 to ₹15,000, and the ceiling amount has been raised from ₹3,500 to ₹5,000. All these changes are as per the new bill. However, it is unclear whether the bill has been amended into the act or if it is still pending approval. Could the seniors provide a clear clarification on this matter? Thank you in advance.
Regards,
MADHAVI
From India, Visakhapatnam
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According to the latest amendments of the Bonus Act 1965, the minimum bonus percentage has been raised from 8.33% to 11%, and the maximum to 20%. The salary limit has increased from ₹10,000 to ₹15,000, and the ceiling amount has been raised from ₹3,500 to ₹5,000. All these changes are as per the new bill. However, it is unclear whether the bill has been amended into the act or if it is still pending approval. Could the seniors provide a clear clarification on this matter? Thank you in advance.
Regards,
MADHAVI
From India, Visakhapatnam
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salary for calculation of bonus as per query mentioned above is of to take amount from paid p.f. As mentioned in the query which can be <=10,000/- and not that 15000 amount.
From India, Ahmadabad
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From India, Ahmadabad
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SALARY SHEET CALCULATION.xls
Salary calculation.doc