1. According to the Bonus Act, the bonus is not the same for all employees. Is this correct?
2. Is the cap for a basic salary set at 7000 correct?
3. If the basic salary exceeds 7000, can we adjust payments based on the actual amount?
Please suggest, especially in the context of a real estate firm.
From India, Secunderabad
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22. Is the cap for a basic salary set at 7000 correct?
3. If the basic salary exceeds 7000, can we adjust payments based on the actual amount?
Please suggest, especially in the context of a real estate firm.
From India, Secunderabad
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1. The Bonus Act does not mandate a uniform bonus for all employees. It allows for variations based on factors such as performance, tenure, or other specified criteria within the legal framework.
2. The cap for a basic salary at 7000 is not accurate. The Bonus Act does not specify a fixed cap for basic salary in relation to bonus calculations.
3. When the basic salary exceeds 7000, adjustments to bonus payments should be made in accordance with the actual salary amount. The Bonus Act provides guidelines on how such adjustments can be calculated to ensure compliance with legal requirements. It is essential to follow the provisions of the Bonus Act and any specific regulations applicable to real estate firms to determine the correct bonus payments based on actual basic salary figures.
From India, Gurugram
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2. The cap for a basic salary at 7000 is not accurate. The Bonus Act does not specify a fixed cap for basic salary in relation to bonus calculations.
3. When the basic salary exceeds 7000, adjustments to bonus payments should be made in accordance with the actual salary amount. The Bonus Act provides guidelines on how such adjustments can be calculated to ensure compliance with legal requirements. It is essential to follow the provisions of the Bonus Act and any specific regulations applicable to real estate firms to determine the correct bonus payments based on actual basic salary figures.
From India, Gurugram
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Bonus qualifying salary means Rs 7000 or the notified minimum wages whichever is higher.
1. The rate of bonus may be equal but the amount of bonus will depend upon the salary earned.
2. If you are calculating bonus strictly according to Payment of Bonus Act, you can restrict the bonus qualifying wages to Rs 7000 or the statutory minimum wages applicable to each category of employees which ever is higher. Therefore, if your notified minimum wages is higher than Rs 7000, say, Rs 10000, then you cannot restrict the bonus to certain percentage of 7000 but it should be on Rs 10000.
3. If the statutory minimum wages is Rs 7000 or less than Rs 7000, then you have to calculate the bonus considering that the wages is Rs 7000 even if the employee is getting a salary which is above Rs 7000. That is, if the actual basic pay is Rs 10000, and the minimum wages notified is Rs 6900, then you can pay bonus calculated assuming that the wages is Rs 7000. He need not be paid bonus calculated on Rs 10000. But if the minimum wages is above Rs 7000, say, Rs 19900, and the employee is paid Rs 15000 per month as wages, then you have to calculate bonus on Rs 19900. Obviously, you cannot pay wages less than the notified minimum wages.
From India, Kannur
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1. The rate of bonus may be equal but the amount of bonus will depend upon the salary earned.
2. If you are calculating bonus strictly according to Payment of Bonus Act, you can restrict the bonus qualifying wages to Rs 7000 or the statutory minimum wages applicable to each category of employees which ever is higher. Therefore, if your notified minimum wages is higher than Rs 7000, say, Rs 10000, then you cannot restrict the bonus to certain percentage of 7000 but it should be on Rs 10000.
3. If the statutory minimum wages is Rs 7000 or less than Rs 7000, then you have to calculate the bonus considering that the wages is Rs 7000 even if the employee is getting a salary which is above Rs 7000. That is, if the actual basic pay is Rs 10000, and the minimum wages notified is Rs 6900, then you can pay bonus calculated assuming that the wages is Rs 7000. He need not be paid bonus calculated on Rs 10000. But if the minimum wages is above Rs 7000, say, Rs 19900, and the employee is paid Rs 15000 per month as wages, then you have to calculate bonus on Rs 19900. Obviously, you cannot pay wages less than the notified minimum wages.
From India, Kannur
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Dear Ramesh,
1. According to the Bonus Act, the employees receiving monthly salary up to ₹21000/- are eligible for bonus. The bonus is not same for all employees are correct.
2. The calculation of bonus is to be done, the minimum basic salary cap is set at ₹7000(where minimum wages is below 7000) and the maximum wages limit is ₹21000.
3. If the basic salary exceeds 7000, you need to calculate payments based on the actual amount.
There is no separate provision made in the bonus act for the real-estate establishment. You are advised to follow the bonus rules of your state, if there is something especially for the real estate firm.
From India, Mumbai
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1. According to the Bonus Act, the employees receiving monthly salary up to ₹21000/- are eligible for bonus. The bonus is not same for all employees are correct.
2. The calculation of bonus is to be done, the minimum basic salary cap is set at ₹7000(where minimum wages is below 7000) and the maximum wages limit is ₹21000.
3. If the basic salary exceeds 7000, you need to calculate payments based on the actual amount.
There is no separate provision made in the bonus act for the real-estate establishment. You are advised to follow the bonus rules of your state, if there is something especially for the real estate firm.
From India, Mumbai
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