Legal Counsel
Raj Meritech
Executive (hr & Admn.)
Organizational Development, Self Managed
Subodh Mudgal
Hr Executive In Mfg. Company

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Good afternoon to all
I am Subodh mudgal working in manufacturing company & want to know what is the provision in bonus act for left employees.for example a person who has worked in a company from June06 to April 07.how can we pay the bonus to the left employee.Should we send a cheque to his permanent address or ask him to come in company to collect the bonus amount or in another way .what is the laibility of the company for unpaid bonus.plz tell me the legal way & mode of payment of bonus to be paid to the left employees.

You can pay him the bonus either by cheque or by cash as you think suitable. But you should get a receipt of bonus from that employee. There is no any provision for this. Thanks Raj
Hi, I would suggest you to make it through the payroll with final setlement or by asking the individual to collect it personaly. Regards Sathiya
The Bonus Act ceiling has been raised w.e.f 2007-2007.It is Management has a duty to send it. Prepare a DD and send it by RPAD or send a letter asking the person to come over if he is available locally.But for out station persons you have to send it by post.Once the DD is posted your liability ends.
with kind regards,
V.Sounder Rajan
Chennai – 600 001.
E-mail :

Off : 044-42620864, 044-65874684

Dear All,
Please help me about for calculation of bonus. If an employee has 7 days absent in a particular month. how should i calculated bonus for the particular month. Also if employees have earned salary exceeds Rs. 2500.00.
which is calculated at rate of 20% of salary assuming salary Rs.2500.00 per month. (2500*20% = 500) OR (1917*20% = 383)

Do not be too technical in calculation .Bonus is paid annually.If Salary is Rs 2500/-p.m then Rs 2500/-X 12 = 30000 X 8.33% minimum Bonus or X 20 % Maximum Bonus. Dont be bothered about days stuff.
With Regards
V.Sounder Rajan

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