hello everyone,
currently i am working in a manufacturing company as an hr executive my question is actually i am confused about bonus act how to calculate monthly bonus and how much time required for an employee to get eligible for bonus?
And if a worker work for 6 month and then he left the job is bonus act applicable to him?
so please help me out in this matter.
Thanks & Regard,
Neetu Verma
From India, Faridabad
currently i am working in a manufacturing company as an hr executive my question is actually i am confused about bonus act how to calculate monthly bonus and how much time required for an employee to get eligible for bonus?
And if a worker work for 6 month and then he left the job is bonus act applicable to him?
so please help me out in this matter.
Thanks & Regard,
Neetu Verma
From India, Faridabad
Dear Neetu,
I would request you to go through the Payment of Bonus Act,1965 first and raise your questions next. The statutory bonus contemplated under the Act is Annual Bonus computed as a percentage to the surplus earned out of the performance of the establishment and the total earnings of the eligible employees in an accounting year. Any eligible employee having worked for a minimum of 30 days in the accounting year is entitled to bonus irrespective of the fact whether he remains in service or not at the time of declaration of bonus for the particular accounting year.
From India, Salem
6016I would request you to go through the Payment of Bonus Act,1965 first and raise your questions next. The statutory bonus contemplated under the Act is Annual Bonus computed as a percentage to the surplus earned out of the performance of the establishment and the total earnings of the eligible employees in an accounting year. Any eligible employee having worked for a minimum of 30 days in the accounting year is entitled to bonus irrespective of the fact whether he remains in service or not at the time of declaration of bonus for the particular accounting year.
From India, Salem
Dear Neetu
First you Need to check out weather
your company covers within the purview of bonus act. 1965 or not as per section 1(3)(b) also check sec 16 of payment of bonus act. 1965 which provide exemption for newly establishment/company upto five year in form of having No profit & Inadequate profit. However as per section 8 if any employee has worked 30 days or more inclusive Weekly Holiday and National and festival holiday shall be entitled to get bonus
Provided that said employee also eligible as per section 2(13) of payment of bonus act. 1965. With regard to bonus calculation Assume : employee basic plus DA is 6000 PM and State minimum wages is say 7500 for scheduled employment. Hence minimum bonus@ 8.33% shall be calculate on actual basic plus DA drawn by employee i.e 6000. If employee basic plus DA is say 7200 more then ceiling limit then state minimum waged i.e 7500 shall be taken for bonus calculation. And if
State minimum wages is say 6500 so
In this scenario bonus shall be calculate on 7000 i.e ceiling limit?
Hope your doubt clear
Thanks & Regards
V SHAKYA
HR & Labour Laws Advisor
From India, Agra
First you Need to check out weather
your company covers within the purview of bonus act. 1965 or not as per section 1(3)(b) also check sec 16 of payment of bonus act. 1965 which provide exemption for newly establishment/company upto five year in form of having No profit & Inadequate profit. However as per section 8 if any employee has worked 30 days or more inclusive Weekly Holiday and National and festival holiday shall be entitled to get bonus
Provided that said employee also eligible as per section 2(13) of payment of bonus act. 1965. With regard to bonus calculation Assume : employee basic plus DA is 6000 PM and State minimum wages is say 7500 for scheduled employment. Hence minimum bonus@ 8.33% shall be calculate on actual basic plus DA drawn by employee i.e 6000. If employee basic plus DA is say 7200 more then ceiling limit then state minimum waged i.e 7500 shall be taken for bonus calculation. And if
State minimum wages is say 6500 so
In this scenario bonus shall be calculate on 7000 i.e ceiling limit?
Hope your doubt clear
Thanks & Regards
V SHAKYA
HR & Labour Laws Advisor
From India, Agra
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Time-management -7439-4556_187. ppt
Time-management _sent__1__200.d oc