Payment of Bonus is governed by ' The Payment of Bonus Act-1965'. Bonus may be in simple terms defined as an extra payment to a workmen or other category of employees. payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith.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.
every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year,
The Percentage of Bonus is calculated as a summation of an employee's Basic and Dearness allowance.
a minimum bonus which shall be 8.33 percent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:
Payment of maximum Bonus-
the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting 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.
Senior Personnel Executive.
Sundaram Clayton Ltd.
But I would like to know the practical knowledge or experience......wat other companies are doing for calculation of bonus...as i have mentioned how my company is doing........
plz share ur experience....the result which shall come that would be very informative for we all....
knowledge grows when we share.........
I have one doubt...kindly clarrify it...
I think in IT industry there is no so called DA..
They just have basic,HRA,travel allowance,medical allowance,entertainment,mobile etc.....
now according to the amendment ceiling rate is rs3500.minimum is 8.33% and maximum is 20%...
now all r including into bonus criteria those basic +DA >10k..
my quesry is how the calculation is made on the basis of ceiling rate.............
Hope I shall get the answer over here....
first schedule for which company and second schedule for which?
In the first schedule net PF as shown in the p&l a/c after making usual
and necessary provisions.
What is the usual and necessary provisions?What it include?
Please suggest me