Dear All,

Greeting of the day!!!

I want to clear my doubts about Bonus

1. Bonus limit is between Rs 3500 to Rs 10000.(8.33% to 20%)

If workers ask gave them 20% bonus on their (Basic+DA) salary. Can they compel to employer for 20% or its employer duty to pay 8.33% or 20%.

and please guide me if any amendment in bonus Act.in 2013.If anybody can send me latest update book.

2.If employee has Rs 3500 per month salary then after a year what would his bonus amount is it Rs 3500.or change.

3.what is the base of bonus calculation.

4.one person told me that calculation 3500*2=7000/total year days then one day salary come. and after that you calculate one day salary * no. of days working.is it right or wrong.

Thanks & Regards

Jagdish

From India

Greeting of the day!!!

I want to clear my doubts about Bonus

1. Bonus limit is between Rs 3500 to Rs 10000.(8.33% to 20%)

If workers ask gave them 20% bonus on their (Basic+DA) salary. Can they compel to employer for 20% or its employer duty to pay 8.33% or 20%.

and please guide me if any amendment in bonus Act.in 2013.If anybody can send me latest update book.

2.If employee has Rs 3500 per month salary then after a year what would his bonus amount is it Rs 3500.or change.

3.what is the base of bonus calculation.

4.one person told me that calculation 3500*2=7000/total year days then one day salary come. and after that you calculate one day salary * no. of days working.is it right or wrong.

Thanks & Regards

Jagdish

From India

Dear Jagdish,

As per the bonus Act 1965, every employer is bound to pay to every employee, a minimum bonus of 8.33% of the salary or wage earned by the employee(i.e. basic + DA) during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year.

From India, Mumbai

As per the bonus Act 1965, every employer is bound to pay to every employee, a minimum bonus of 8.33% of the salary or wage earned by the employee(i.e. basic + DA) during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year.

From India, Mumbai

Dear Jagdish

As per bonus act - 1965 ,

1 only employee is eligible to get bonus ,whose basis salary is less than or equal to 10000/- rs. per month and worked in the same organisation for more than 30 days.

2 Bonus paid always on bonus wages , which is ceiling limit upto Rs. 3500/- per month. For example if an employee is getting 10000/- per month basisc +DA and worked for 30 days, then his bonus amount is equal to Rs. 3500/-.

3 Bonus slab vary between 8.33% as minimum bonus and 20 % as maximum bonus. This is declared by management only based upon allocable surplus and available surplus in Form - A & B of financial statements.

4 One important think that you are asking for salary of Rs. 3500/- per month , that is not possible in current situation , because we can not give less salary , which is prescribed in Minimum wages act. and as per my knowledge , In all states minimum wages are more than Rs. 3500/- per month.

Hopefully you have cleared your doubts about bonus act.

From India, Delhi

As per bonus act - 1965 ,

1 only employee is eligible to get bonus ,whose basis salary is less than or equal to 10000/- rs. per month and worked in the same organisation for more than 30 days.

2 Bonus paid always on bonus wages , which is ceiling limit upto Rs. 3500/- per month. For example if an employee is getting 10000/- per month basisc +DA and worked for 30 days, then his bonus amount is equal to Rs. 3500/-.

3 Bonus slab vary between 8.33% as minimum bonus and 20 % as maximum bonus. This is declared by management only based upon allocable surplus and available surplus in Form - A & B of financial statements.

4 One important think that you are asking for salary of Rs. 3500/- per month , that is not possible in current situation , because we can not give less salary , which is prescribed in Minimum wages act. and as per my knowledge , In all states minimum wages are more than Rs. 3500/- per month.

Hopefully you have cleared your doubts about bonus act.

From India, Delhi

Dear Vikas Jain,

Point 2 which you have mentioned is incorrect.

"Bonus paid always on bonus wages , which is ceiling limit upto Rs. 3500/- per month. For example if an employee is getting 10000/- per month basis + DA and worked for 30 days, then his bonus amount is equal to Rs. 3500/-."

If an employee's salary or wage(basic + DA) is Rs.10000/- per month, then as per the rule he is entitled to get a minimum bonus of 8.33% or Rs.100/- which ever is higher. In this case, the employee is entitles to get a monthly bonus of Rs. 833/- (i.e. 10000 * 8.33%) or an annual bonus of Rs.9996/- (i.i 10000*12(no. of months in a year) * 8.33%).

I hope this clarifies you doubt.

From India, Mumbai

Point 2 which you have mentioned is incorrect.

"Bonus paid always on bonus wages , which is ceiling limit upto Rs. 3500/- per month. For example if an employee is getting 10000/- per month basis + DA and worked for 30 days, then his bonus amount is equal to Rs. 3500/-."

If an employee's salary or wage(basic + DA) is Rs.10000/- per month, then as per the rule he is entitled to get a minimum bonus of 8.33% or Rs.100/- which ever is higher. In this case, the employee is entitles to get a monthly bonus of Rs. 833/- (i.e. 10000 * 8.33%) or an annual bonus of Rs.9996/- (i.i 10000*12(no. of months in a year) * 8.33%).

I hope this clarifies you doubt.

From India, Mumbai

Presentation on Bonus is quiet informative, really appreciate the contributor and many thanks, hope to have similar flow of knowledge and information , B.Dakshina Murty

From India, Hyderabad

From India, Hyderabad

Dear Mr. Bhavik,

The bonus calculation should be made on Rs. 3500/- not on Rs. 10000/-

Rs. 10,000/- is the ceiling limit for eligibility not for calculation.

I agreee with the statements of Mr. Jagdish.

Regards,

Dinesh

From India, Wardha

The bonus calculation should be made on Rs. 3500/- not on Rs. 10000/-

Rs. 10,000/- is the ceiling limit for eligibility not for calculation.

I agreee with the statements of Mr. Jagdish.

Regards,

Dinesh

From India, Wardha

Dear Dinesh,

Thank you for the clarifying this. I have checked the same with my seniors and you are right, "The bonus calculation should be made on Rs. 3500/- not on Rs. 10000/-. Rs. 10,000/- is the ceiling limit for eligibility not for calculation."

Thanks once again.

From India, Mumbai

Thank you for the clarifying this. I have checked the same with my seniors and you are right, "The bonus calculation should be made on Rs. 3500/- not on Rs. 10000/-. Rs. 10,000/- is the ceiling limit for eligibility not for calculation."

Thanks once again.

From India, Mumbai

#Subject List: bonus calculation bonus act latest amendments bonus act 1965 bonus rules minimum wages wages act bonus slab minimum bonus ceiling limit retrenchment benefit