Shekar Valeru

Dear Seniors, Please help me that we need to give the letter/covering letter to labour department regarding giving bonus to employees of our company.
please replay me soon.
Thnkas and regards
Shekar Valeru

From India, Hyderabad
Human Resource Managemnt
Senior Manager - Human Resources
Manager Hr
Shekar Valeru
Maruthi N
Team Lead Compliance
+2 Others

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Rahul Vinayak Wagh

The Asstt. Labour Commissioner,
Labour Office, Bunglow No.5,
Pune Mumbai Road,
Shivaji nagar,
Pune- 411 005.
Subject:- Submission of Annual Return of Bonus
Dear Sir,
Please find enclosed herewith a return in Form D for the accounting year 01.04.2012
to 31.03.2013 duly completed in all respect and signed by us.
This is for your information and record please.
Kindly acknowledge the receipt.
Thanking you,
Yours faithfully,

From India, Chakan

Dear Sir If you are going to give Bonus to your workmen then please enter into a18(1)settlement and a copy shall be forwarded to Labour Officer. Regards C Manimaran Coimbatore
From India, Bangalore
Shekar Valeru

Dear Rahul Vinayak Ji,

Thanks a lot for replay, and I am new to this company I do not have idea on this bonus work, please replay my bellow mentioned doubts

1) who is the eligible for bonus and on what basis we have give the bonus.

2) minimum and maximum bonus and moth wise bonus it means if 5 months worked employee how much he can get

3) bonus can we give on basic or gross or CTC and what is the salary limit.

4) when we have to give the bonus and means after complete the account year.

5) for giving the bonus to employees what is the rule for company means for example 2 years back started company, that company can give the bonus to employees or not.

6) what type of documents we need to file and in that what documents we need to submit to labour office with covering letter (which you have given above) and up to when we can submit to labour office

7) sir last one, when can I get books soft copies or hard copies for the generalist profile to improve the knowledge, like this bonus and pf rules and pt rules, salary rule, labour rules, how to divide the salary payslip rules etc.

If possible please replay ASAP. I need to work on this tomorrow at my office,please,,,,,

Thanks in advance.

Shekar Valeru


From India, Hyderabad

Dear Shekar.
Payment of Bonus is actually accounting function. The gross profit has to be calculated as per the provisions of this Act for knowing available surplus viz. amount available for disbursement of bonus for the year. Percentage of bonus to be calculated by relating year's bonus wages (Basic+DA) with it. Then there are provisions of set on & set off. All these requirements area accounting functions. Currently employee drawing Basic+DA of < Rs. 10000 pm is entitled to receive bonus provided s/he has worked for 30+ days in FY to which the bonus is to be paid. It is to be paid within 8 months close of FY.
As far other requirements are concerned please do R&D on search engines for yourself.
Shrikant Prabhudesai

From India, Mumbai
Hai Good Morning My dear Seniors,
this is siva from hyderabad am working as hr - officer from 3 years on words
i want to knw about bell curve method, what is the bell cure?
how it will be effect in pf system?
how do we do for that bell curve plz help me on this any one.
bcz now our new president want to implement this bell curve method

From India, Vijayawada

Dear Shekhar,
Bonus Payment is governed by "THE PAYMENT OF BONUS ACT, 1965 " for calculation of bonus below few points are important..
1. If your establishment is not 5 years old and Balance sheet shows in loss then your establishment is not entitle for bonus payment.
2.Before 5years if your establishment balance sheet show profit than establishment is entitle for bonus payment
3.Rate of Bonus is 8.33% minimum and 20% maximum
4.Any employee whose Basic +DA is Less than 10000.
5. Eligibility for bonus.- 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 30 working days in that year.
6. Bonus return is submit to labour department in form D and Bonus payment record in form C
For more detail you must go through the Act and restart this discussion again once .

From India, Bangalore
Shekar Valeru

Dear Manish Ji,
Thanks a lot, clearly understood.
One more query that is for example if one company 3 years balance sheet shows in loss and 2 years shows in profit, is it eligible for paying bonus to employees or not and in one company one person is working 22,000 gross PM an his basic is 12000 (60% on the gross) and he worked for 9 months and left, is he eligible or not, or more than 10000 basic+da nobody is eligible or if he is not eligible then he is eligible for anything other than the bonus, please give me clarify. and please send me the how to do the salary partition like basic, DA and HRA etc.
Thanks in advance.
Sheka Valeru

From India, Hyderabad
I worked for 5 Months and left the company. Shall I get bonus.Moreover to decrease the manpower they forced me to resign the job.
From India, Hyderabad

Dear Valeru,


If company is in loss from staring 3 years and after next two years in profit than company is paid bonus for two years, if company get profit in staring two years than in loss than company will paid bonus for 5-years means when after 3-years company get profit than will paid .As per Bonus Act 1965, in section

16. Special provisions with respect to certain establishments as

[(1) Where an establishment is newly set up, whether before or after the commencement of this Act, the employees of such establishment

shall be entitled to be paid bonus under this Act in accordance with the provisions of sub-sections (1A), (1B) and (1C). (1A) In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment,bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this Act in relation to that year, but without applying the provisions of section

15. (1B) For the sixth and seventh accounting years following the accounting year in which the employer sells the goods produced or

manufactured by him or renders services, as the case may be, from such establishment, the provisions of section 15 shall apply subject to the

following modifications, namely:-(i) for the sixth accounting year--set on or set off, as the case may be, shall be made in the manner illustrated in the 2*[Fourth Schedule] taking into account the excess or deficency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth and sixth accounting years; (ii) for the seventh accounting year--set on or set off, as the case may be, shall be made in the manner illustraed in the

1*[Fourth Schedule taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth,sixth and seventh accounting years.

As per Act if Basic+DA is more than 10000 than he is not entitle for bonus, company is such employee as ex- gratia. Calculation of basic is vary company to company but in case of minimum wage it should be minimum wage as per grade.

If Gross is 12000/- and its 60% is 7200(Basic) and minimum wage is 7500 than basic+DA should be 7500.

If any one worked 30 days in financial years then he is entitle for bonus with some exemption as per act.



From India, Bangalore

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