Industrial Relations And Labour Laws
Pan Singh Dangwal
Assistant Manager- Hr
Human Resources Management
Amit Aishwary Choudhary
Managing People At Work.
Hr/ Admin Head
Human Resource Professional
Customer Relation Executibe
Thanks for your valuable contribution.Its an excellent sheet.
Sir i do have some query regarding this sheet.First what is FDA attached with basic.What kind of salary component is this.Secondly in the second calculation its written in a note "this is above 21000 and can be called as exgratia but the actual and the earned basic are less than 21000/-.
I mean wage limit is 21000/- so how it iscalled exgratia.
Please do clarify my doubts
24th June 2016 From India, Calcutta
Retrospective Effect From FY 2014-15 Of Payment Of Bonus (Amendment) Act, 2015 Stayed By Various High Courts - Employment and HR - India
8th October 2016 From India, Delhi
22nd October 2016 From India, Kannur
i need your help as my company is paying bonus for last financial year-2015-16 to all the employees out of which few are based as delhi & few are from haryana.
and basic salary for Delhi based employees are 11500/-
Haryana based employees are-9000/-
so can u please guide me how to calculate their Bonus amount .
22nd October 2016 From India, Faridabad
Iam employee of a private company of salary 13000/p.m in financial year 2015-16. The company started on 1sep 2015 and i have joined on 1 oct 2015. If i am eligible ro bonus or not??. If am eligible to bonus how to calculate the bonus either it has to taken fully financial year or not??
Calculation of minimum bonus
1. 13000x8.33%x12 or
2. 13000x8.33%x6 or
The company has fixed the bonus amount to 10000/-
Plese suggest me how much amount i can be received
22nd October 2016 From India, undefined
I wanted to know the bonus calculation. I believe that no. of days are taken into account while calculating bonus. Pls guide that, if we consider days as per monthly attendance, we deduct unpaid leaves or absent days/ penalties due to late coming . Then whether we can consider a paid med. leave in counting present days or not?
Thanks & regards
3rd November 2016 From India, Pune
Now, the entire discussion leads to a conclusion that if your salary exceeds Rs 7000, your bonus will be calculated based on 7000 and not on the actual salary received. Therefore, unless otherwise agreed upon, your bonus will be calculated at the rate of 8.33% or such higher percentage as decided by the management on 7000 for six months.
If you have been on loss of pay leave, such leave days can be deducted from this 7000 in order to arrive at the actual bonus qualifying salary.
Salary means actual salary paid whether you were present for work or were on leave with salary.
All paid days will be counted as days present for the purpose of bonus calculation
4th November 2016 From India, Kannur
in case of Mr. G Prakash Kumar, in april month actual salary is Rs.6500/- and same amount took for bonus calculation where bonus calculation limit minimum Rs.7000/- .
am i right ?
29th November 2016 From India, Dehra Dun
1.An employee who is drawing salary or wages not exceeding Rs.7000/-per month,is entitled to get bonus on entire salary or wages or minimum wages,whichever is higher.
2. An employee who is drawing salary or wages between Rs.7000/-per month and Rs.21000/-per month,the bonus payable to him is to be calculated as,if his salary or wages were Rs.7000/-per month.
3. An employee drawing a salary or wage exceeding Rs.21000/-per month is not entitled to get bonus as per payment of Bonus Act.
$$$ MINIMUM & MAXIMUM BONUS LIMIT
1. An employer is bound to pay his employee every year a minimum bonus of @8.33% of the yearly salary or wage or Rs.100/-whichever is higher,whether he has allocable surplus or not.
2. If in any year the allocable surplus exceeds the amount of minimum bonus payable to the employees,the maximum bonus payable by the employer to his employee in the particular year is @20% of the yearly salary or wages.
$$$ SUM WITH REFERENCE TO WHICH BONUS IS PAYABLE
- For the purpose of calculation of bonus salary or wages includes basic salary,dearness allowance/ special allowance only,but does not include other allowance such as overtime,HRA, Conveyance,Travelling Allowance,Monthly Bonus,Contribution to PF,Retrenchment Compensation,Gratuity or commission.
$$$ TIME LIMIT FOR PAYMENT OF BONUS
1. Bonus must be paid within a period of 8 months from the close of accounting year i.e. April to March.
2. If any disputes about the payment of bonus is pending before any authority,then bonus must be paid within one month from the date of awarded by any such authority.
$$$ IS BONUS PAYABLE TO CONTRACTORS EMPLOYEES?
- Section 32 provides that the act shall not apply to certain classes of employees. Clause(vi) refers to " employees employed through contractors on building operation". This clause has been deleted by the Payment of Bonus Amendment Ordinance,2007 with retrospective effect from 1st April 2006. The said class of employees is therefore,entitled to get bonus w.e.f 1st April 2006.
$$$ IS A SEASONAL WORKER ENTITLED TO GET BONUS ?
- Section 8,relates to the eligibility for bonus. If a seasonal worker has worked in an establishment for more than 30 working days,he shall be entitled to get bonus.
$$$ THE PAYMENT OF BONUS (AMENDMENT) ACT,2015 W.E.F. 1ST APRIL,2014
1. Eligibility for employees:
a) The act provides for enhancing bonus calculating ceiling from Rs.3500 to Rs.7000 per month or the minimum wages for the scheduled employment whichever is higher.
b) The eligibility limit for payment of bonus from Rs.10000 per month to Rs.21000 per month.
2.Calculation of Bonus: As per section 12 of the act, now calculation ceiling of bonus raises from Rs.3500 to Rs.7000 per month.
a) The maximum bonus payable to an employee (20% of Rs.7000 X 12) become Rs.16800/ for the year or more, if minimum wages are more than Rs.7000/-per month.
$$$ RECORDS TO BE MAINTAINED
1. A register in "Form No. A" showing computation of allocable surplus.
2. A register in "Form No. B" showing set-on & set-off of the allocable surplus.
3. A register in "Form No.C" showing details of the bonus due to each of the employee & deductions u/s 17 & 18 and the amount actually disbursed.
4. Annual return in "Form No.D" within 30 days
- Where for any year the allocable surplus exceeds the amount of maximum bonus payable to the employees,the the excess shall (limit of 20% bonus of total salary or wages) be carried forward for being set on in the succeeding year and so on to be utilised for the purpose of payment of bonus
- Where for any year there is no surplus in respect of that year falls short of the amount of minimum bonus payable (i.e.8.33% ) i.e. there is no amount or sufficient amount carried forward and set on which can be utilised for the purpose of minimum bonus, then such minimum amount shall be carried forward for being set off in succeeding year and so on.
I hope that this information will be plays a vital role when you are going to bonus calculation .
2nd December 2016 From India, Delhi
Applicable to all employees whose basic + DA ('eligible salary') less than Rs.21,000
Minimum bonus payable is 8.33% of eligible salary and maximum bonus 20% of eligible salary
If 8.33% of eligible salary exceeds Rs.7,000 per year, then the statutory bonus limited to Rs.7,000 or Rs.583 per month
Statutory bonus payable on monthly also based on actual number of days worked, etc (excluding LOP's)
The revised bonus limits as given above are applicable from 1 April 2014
Every employee whose salary not exceeds Rs.21,000 per month eligible for statutory bonus
Every category of employees, including skilled or unskilled, supervisory, managerial, administrative, technical or clerical works
8.33% is the minimum bonus and the amount increases when the profit of the entity grows-up
Maximum bonus payable to any employee, even if they are making good profits limit to 20% of eligible salary - Rs. 16,800 for the year or Rs. 1,400 per month
Minimum or maximum bonus depends on "Allocable Surplus" available to the entity - calculation based on the formula given in the Rules / Act
Bonus may be paid on monthly basis, however employees cannot demand for monthly payment. Similarly employees are eligible for the proportionate bonus at the time of resignation / retirement / termination.
If the statutory bonus payable is less than the minimum wages, then the entity need to pay atleast the amount equal to the minimum wages
If bonus accurately not computed and paid to the employees, this will become a statutory violation. Any labour law violation in India considered as significant default.
7th January 2017 From India, Kochi
From where you got the details.
As per latest amendment, for calculation of Bonus, the Salary limit is Rs.7000/- or actual salary, whichever is higher. Hence the ceiling wages/salary for calculation of Bonus is not applicable.
You have to consider the full only for those whoever draws the salary less than Rs.21000/- pm.
7th January 2017 From India, Kumbakonam
Please let me know whether the bonus will be calculated effective from June 2016 or they will provide for entire 5 years.
Also, whether they can pay minimum of 583 and maximum 1400 per month for each employee from the date of joining right.
28th January 2017 From India, Bengaluru
28th January 2017 From India, Kannur
#AnonymousHi everyone,I am new to this field and I am in a confusion in calculations with this new Amendment into Payment of Bonus Act, dtd:31/12/2015.
Someone please clearify how to proceed on for making payments of bonus.Approx. details are as follows INR:-
Skilled=9200 p.m. (approx.)
Semi-skilled=7200 p. m.
Un-skilled=6200 p. m.
1)Do i have to compute bonuses on higher than 7000/-values for skilled and semi-skilled category? or to compute with 7000/-
2)For unskilled category what will be the amount in bonus calculations? 7000/- or 6200/-
29th January 2017 From India, New Delhi
"Hi everyone,I am new to this field and I am in a confusion in calculations with this new Amendment into Payment of Bonus Act, dtd:31/12/2015.
Skilled=9200/pm, Semi-skilled=7200/p.m.,Un-skilled=6200/pm" ====
As per the Amendment Bonus shall be payable Seven Thousand Rupees or the Minimum Wages, whichever is higher. So in the above case for unskilled you have to pay @ 7000/-. In case of Skilled and Semi-skilled the bonus will be calculated @ 8.33% of the Basic+DA earned during the year. However, if the amount comes less than Rs. 7000/-, than 7000/- will be payable as Bonus (Being minimum amount).
Hope you will agree with my point. Fellow members can put more light on the matter.
11th April 2017 From India, Delhi
26th April 2017 From India, Kannur
I want to know the calculation of bonus 16-17 as per new amendments act .
if our monthly salary is following:
pls arrange to provide the calculation of all above salary. How I calulate it.
pl share excel sheet & details here
18th September 2017 From India, Dhule
As per the Act employee eligible for bonus with minimum 30 days working in organisation .
He joines just 15 days before the ending of financial year. So how his bonus will be calculated .
will he be eligible for bonus for first 15 of ending financial year
16th November 2017 From India, Agra
Madhu T K
17th November 2017 From India, Kannur
8th December 2018 From India, Kannur