Dear All,
Kindly advise me on the Bonus Act. I have come to know that if a person earns above Rs. 21,000, then the company is not required to pay him a bonus. However, there is no clarification on whether they are referring to the basic salary or gross salary.
Kindly clarify for me.
Thank you.
From India, Coimbatore
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Kindly advise me on the Bonus Act. I have come to know that if a person earns above Rs. 21,000, then the company is not required to pay him a bonus. However, there is no clarification on whether they are referring to the basic salary or gross salary.
Kindly clarify for me.
Thank you.
From India, Coimbatore
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Payment of bonus act 1965 mentions that if an employee is earning a basic pay of less than 21k pm, he is liable to get statutory bonus as per the said act. Regards Rahul
From India, Delhi
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157From India, Delhi
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As per the Payment of Bonus Act if an employees basic + DA is more than Rs 21000/- he is not eligible to receive payment of bonus. Adv Sujeet Salkar 9702963645
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Dear Hari,
If his/her gross salary is more than 21k, it means there is no need for ESI benefits. The PF benefit is only eligible for that employee. The deduction is on the employee's contribution of 10% and professional tax from the employee end.
Thanks & Regards,
S. Ananth - HR
From India, Chennai
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If his/her gross salary is more than 21k, it means there is no need for ESI benefits. The PF benefit is only eligible for that employee. The deduction is on the employee's contribution of 10% and professional tax from the employee end.
Thanks & Regards,
S. Ananth - HR
From India, Chennai
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Adv Sujit Salkar has rightly pointed out that if the basic+DA of an eligible employee exceeds Rs.21000/-pm, he/she is not entitled to statutory bonus. R R Kapoor Vadodara
From India, Vadodara
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From India, Vadodara
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Dear Learned members,
Under the Bonus Act, there are two definitions of wages:
(i) Wages for eligibility criteria (Bonus wages ceiling) and (ii) Wages for calculation of Bonus for eligible employees. In the first case (while checking the eligibility criteria), the total wages are countable (which should not exceed Rs. 21,000). Please see the below abstract of the Bonus Act:
"Salary or wage" means all remuneration (other than remuneration in respect of overtime work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment and includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living), but does not include:
(i) any other allowance which the employee is for the time being entitled; (ii) the value of any house accommodation or supply of light, water, medical attendance, any other amenity, any service, any concessional supply of food grains, or other articles; (iii) any traveling concession; (iv) any bonus (including incentive, production, and attendance bonus); (v) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the time being in force; (vi) any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him; (vii) any commission payable to the employee.
In the second case (while calculating Bonus), wages mean Basic+DA. It should be 8.33% of the earned Basic+DA for the year or Rs. 7,000, whichever is higher. Senior members can shed more light on the matter.
From India, Delhi
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Under the Bonus Act, there are two definitions of wages:
(i) Wages for eligibility criteria (Bonus wages ceiling) and (ii) Wages for calculation of Bonus for eligible employees. In the first case (while checking the eligibility criteria), the total wages are countable (which should not exceed Rs. 21,000). Please see the below abstract of the Bonus Act:
"Salary or wage" means all remuneration (other than remuneration in respect of overtime work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment and includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living), but does not include:
(i) any other allowance which the employee is for the time being entitled; (ii) the value of any house accommodation or supply of light, water, medical attendance, any other amenity, any service, any concessional supply of food grains, or other articles; (iii) any traveling concession; (iv) any bonus (including incentive, production, and attendance bonus); (v) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the time being in force; (vi) any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him; (vii) any commission payable to the employee.
In the second case (while calculating Bonus), wages mean Basic+DA. It should be 8.33% of the earned Basic+DA for the year or Rs. 7,000, whichever is higher. Senior members can shed more light on the matter.
From India, Delhi
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What Mr. Pan Singh says is correct.
(i) Minimum Bonus:
Rs. 7,000/- is the minimum bonus as per the act. That is 8.33% of Annual earned BASIC+DA. Either Rs. 7,000/- or actual whichever is less.
(ii) Maximum Bonus:
Annual earned BASIC+DA x 20%. That is either Rs. 16,800/- or actual whichever is less. If DA is paid in salary, we can add DA or otherwise DA is taken as zero. Bonus to be paid whether minimum or maximum shall be decided based on the guidelines given in the act.
From India, Chennai
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(i) Minimum Bonus:
Rs. 7,000/- is the minimum bonus as per the act. That is 8.33% of Annual earned BASIC+DA. Either Rs. 7,000/- or actual whichever is less.
(ii) Maximum Bonus:
Annual earned BASIC+DA x 20%. That is either Rs. 16,800/- or actual whichever is less. If DA is paid in salary, we can add DA or otherwise DA is taken as zero. Bonus to be paid whether minimum or maximum shall be decided based on the guidelines given in the act.
From India, Chennai
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