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Statutory Bonus is mainly concerned for workmen category, who comes under Contract Labour Act / minimum wages Act. You please dont compare your salary for Bonus. Salary of the minimum wages workmen is comparatively low and Rs. 3,500/- is good amount for them. Earlier, Bonus applicable to the employees whose basic was Rs. 3,500/-, however, it has been enhanced to Rs. 10,000/- in the year 2007 for covering more employees (enenthough the ceiling limit is 3,500/-)
Computation of bonus should be worked out as per schedule I to IV of the Act. Every person drawing salary between Rs3500/- and Rs10,000/- per month. The bonus payable to him is to be calculated as if his salar were Rs3500/- p.m.
Till date there is not any enanchement to Rs 5000/-pm.
Thanks & Regards
V K Sharma
Dept of Accounts
TPL, RSP, Rourkela
My opinion after going through this conversation, the payment of bonus act after amendment ,cover large employees,it is good thing for us,before that we only calculate on rs 2500/salary limit was 3500.
An employee is eligible to get bonus only when he has worked for 30 working days in that year & drawing wages upto Rs.10000/- per month or less.Wages means Basic +DA.
In your case,you are drawing Rs. 9500(Basic+DA) wage per month.You are eligible for Bonus.
I have also enclosed excel sheet to determine eligibility for bonus based on monthwise salary.
The site has amply made it clear that Bonus is Statutory and is a must to keep the employees free from other social pressures. However there is a better method. Looking after the social needs of the family works better than bonus in terms of employees retention. A proved method even before 5 decades by none other than Shri. Gurumoorthy of Ms SIMSON GROUP, Tamilnadu. He was then the first to get Max Bonus in entire India to the entire group. All these are not by fighting but by proven and committed output from the employees. And we can fill pages over suceesses of the group before the political interference by a state party. Even today many industries suffer under political rival unions.
Best method could be to take care of the educational and few important social oblications like family health and happiness ( Deepali, New Year and alike, Leave Travel Cocession etc.,) which would give a major bondage and would help in employees retention with committment. Certainly a compremising formula could be worked out with employees partivcipative body ( non political Union).
My suggestion to some small indusries in this regard had worked well for them as well as the employees.