Private Consultant On Labour Laws
As per Bonus Act, employee who draws gross wage below Rs 10000/- (Basic & DA) and who works for not less than 30 actual working days during last financial year, is having an eligibility to get bonus on monthly average of Rs 3500/- (Ceiling fixed by act for calculation purpose) for current year. Last date for making payment of bonus is fixed within 8 months on any date from closing the accounts of company i.e 31st March. By this way, the payment should be made on or before 30th November in every year.
With regard to your query about making payment to left employees, the management must pay bonus for them also proportionately for the period of their working during last financial year.The rate of bonus will always be depending upon available surplus and allocable surplus for which the range will be from 8.33% to 20%
12th November 2014 From India, Hyderabad
13th November 2014 From India, Ahmadabad
16th November 2014 From India, Alappuzha
Though my learned colleagues Sh N.V.Rao & Sh G.Hari has given very descriptive legal position in order to resolve your problem.I would like to give reply to your query in seriatim, which is as under-
(i) If someone who is eligible for the statutory bonus leaves the company by December or anytime during the year after the last payout and is not in the company rolls during the actual Bonus payout in the present year- Section 8 of the Payment of Bonus Act,1965 stipulates that every employee, who has worked in the establishment for at least 30 days during that accounting year shall be entitled to payment of bonus even if his name is not borne on the muster rolls of the company on the day of the declaration or payment of bonus.
(ii) Will the company still have to pay the bonus prorated for the number of months that he was there after the last payout period -Yes,under Section 13 of the Payment of Bonus Act,1965, a company is under an obligation to pay bonus to their employees proportionately for the period they have worked during last financial year.
(iii) Is Payment of Bonus Act,1965 applicable to ITES industry? The Act is applicable to (a) every factory as defined under the Factories Act,1948 and (b) every other establishment in which twenty or more persons are employed on any day during an accounting year. Since ITES industries has been classified as commercial establishments and Payment of Bonus Act,1965 covers all such establishments in which twenty or more persons are employed on any day during an accounting year. In Maharashtra, the Payment of Bonus Act,1965 has been applied to all establishments which employs ten or more employees on any day during that accounting year.
(iv) What is the Industry standard for payment of Statutory in the ITES industry?- There is no seprate standard for payment of Statutory bonus in the ITES industry subject to application of Section 16 of the Payment of Bonus Act,1965 which provides certain concession to the newly set up establishments.
17th November 2014 From India, Mumbai
The minimum bonus of 8.33% is payable by every industry and establishment under section 10 of the Act. The maximum bonus including productivity linked bonus that can be paid in any accounting year shall not exceed 20% of the salary/wage of an employee under the section 31 A of the Act.
Eligibility limit : 21,000
Calculation ceiling : Rs. 7000 Or the minimum wage for scheduled employment, as fixed by the appropriate Government, whichever is higher.
27th April 2019 From India, Mumbai