First of all let me welcome you in this knowledge sharing forum. Here you can seek guidance as well as you can guide others.
You have to follow the Payment of Bonus Act for deciding about the Bonus Payment. The eligibility is one must work for 30 working days in the financial year, his salary should not be more than 10000/-. The maximum salary limit for calculating the Bonus is Rs.3500/- and the company must pay minimum 8.33% of Bonus and maximum of 20%. The bonus must invariably be paid whether your company earned profit or not / allocable surplus available or not.
The performance Pay will be given by the company according to the Profit earned by the company and it will be fixed to the employee as per their performance and the ratings given by the immediate superior and the moderation committee will finalise the ratings altogether and decide the fixing the performance of pay for each and every individual staff. For this pay there is no such criteria available but the company will have their own policy.
I feel happy to here to meet you guys, apart from above explanation given to Archana, i just want know is there any specific experience to provide bonus.
For example : An Employee may newly joined into organisation 3 months before of Bonus period, Is he / she elgible to receive it..??
According to the Payment of Bonus Act - 1965 - Every employee of an establishment covered under the Act is entitled to bonus from his employer in an accounting year provided he has worked in that establishment for not less than 30 working days in the year on a salary less than RS.10000/- per month. [Section 2(13) read with Section 8].
If u want kindly refer the attachment...
I am also mentioned the same in my reply to that query.
But for calculating the Bonus it must be calculated for Rs.3500/-. You need not to show the amount Rs.3500/- in case if the employee draw more than Rs. 3500 and less than Rs.10000/-.
Hope you understood the concept of calculating the Bonus.
If you are planning to move towards “Variable Performance Pay” then please ensure that you pay Variable Performance Pay as per your company policy.
In case you come across with such a case that performance was zero and you are not paying any bonus to employee. In this case please see to it that person is not covered under Bonus Act, otherwise minimum bonus you have to pay as per Bonus Act.
Bonus Act supersedes company Variable Performance Pay Policy.
BrainLight HR Solutions
This November you are eligible for full year Bonus as the bonus paid during this november is for the year from 01/4/2011 to 31/3/2012 and for next year you will be eligible only for 2 months and 14 days Bonus for the period from 01/4/2012 to 14/6/2012 only. It will be calculated on prorata basis.