Partner - Risk Management
Sr. Manager Hr/admin
Labour Laws Consultants
Payroll, Statutory Compliance & General
as per recent bonus amendment those salary that is basic plus DA is less than or equal to 21000 hence they are eligible to receive statutory bonus.
its up to your management decision to give more than statutory bonus.
minimum statutory bonus should be INR 7000
18th October 2016 From India
12. Calculation of Bonus with respect to certain employees :
Where the salary or wage of an employee exceeds seven thousand rupees or the minimum wage for scheduled employment, as fixed by the appropriate Government, whichever is higher per mensem, the bonus payable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate government, whichever is higher, per mensem.
After a careful study of the above amended section, it transpires that bonus to the employees drawing salary or wage of less than Rs.7000 p.m. shall be payable on actual salary or wage received by them during the last financial year. But the employees drawing Rs.7000 or more will be entitled to bonus payable on salary or wages received by them during the last financial year with a maximum limit, which is higher of the two, i.e., Rs.7000 or a percentage of minimum wage for their scheduled employment received by them. Thus it transpires that employees getting monthly salary or wage upto Rs.21000 p.m. are entitled to bonus on actual salary or wage received by them for their scheduled employment, as fixed by the appropriate Government, or Rs.7000, whichever is higher.
19th October 2016 From India, Bangalore
You initiated the query by saying "We have 3 employees in our firm whose salary is 150000 lakhs plus so they are eligible for bonus?"
Please note that the payment of bonus act is applicable to the establishments / Factories employing 20 or more employees. Moreover, the salary ceiling for eligibility is <Rs.21000/- as such legally you are not entitled for the payment of bonus.
P K Sharma
20th October 2016 From India, Delhi
20th October 2016 From India, Mumbai
Basic + DA & Rs 7000/- or minimum wages of that location is applicable for bonus calculation whichever is higher.
Let's take Rs,7000* 12*20%= Rs, 16,800/- maximum bonus payable.
20th October 2016 From India, Ghaziabad
We have 3 employees in our firm whose salary is 150000 lakhs plus so they are eligible for bonus?
These employees have a monthly salary of Rs. 1.5 lakhs ? or annual salary of Rs. 1.5 lakhs
And i dont think it can be 1.5 lakh lakhs can it ?
It would be better if you give actual details of the salaries, including the breakup of the salaries
25th October 2016 From India, Mumbai
Interpreting Payment of Bonus (Amendment) Act, 2015 | CompliFacts
25th October 2016 From India, Delhi
25th October 2016 From India, Delhi
First to need to check out weather your
Firm is in the purview of bonus act. Or not As per sec 1(3)(b) after that you need to check
Out weather your firm is in the purview
of exemption of newly establishment upto
Five year as defined in sec 16 of bonus act.
If both the condition is satisfied in respect
Of bonus payment then finally check weather
Employee basic plus DA is less then 21K
Or equal to 21K as defined in sec 2(13)
Of bonus act. If all these criteria is met
& let the employee to get bonus then
Calculate the bonus as per sec 10, 11, 12
Of bonus act. And pay accordingly.
Thanks & Regards
HR & Labour Law Advisor
26th October 2016 From India, Agra