This is for Anshoog and other interested members!
To be eligible to receive Bonus under the Act:
- You have to be a covered employee. (In case of doubt read this thread from the beginning.)
- You have to have worked for atleast 30 days in the agreegate during the financial year.
- The Bonus under the act has nothing to do with your appraisals. Only non-statutory bonus may be linked to performance and therefore to the reviews!
- The process that leads to declaration of bonus under the act goes as under:
- After the close of the financial year the company accounts are finalized. Simultaneously Bonus is determined by following a method prescribed under the Payment of Bonus Act-mostly done by the company CA or the Finance Department.
- Bonus is always a derived figure and depends upon the calculation of Allocable Surplus, Available Surplus and after taking into account the Set On and the Set Off position prescribed under the act.
- Bacause the process of finalization of accounts, the statutory audit, calculation of bonus under the act etc. take the time, the law has stipulated EIGHT months time from the close of the financial year (i.e. upto the end of November) for the payment of statutory bonus.
Since Anshoog will be working right upto end February 09, assuming that she is a covered employee as far as the Payment of Bonus Act 1965 is considered, she HAS to get declared bonus pro-rated to the number of days she was in employment with this particular company.
Having provided the basic information, permit me to add a few observations. Very few employers meticulously adhere to the law. Often the employees as are not covered under the act are also paid derived bonus under the act but it is called by various names like, "ex-gratia", "performance bonus" etc. These are NOT to be confused with or as Bonus under the act.
Many times one finds that Bonus is paid even at 20% but being the maximum payable bonus, no one complains, yet the law may have been ignored!
I suppose you have got your answers. If there are more questions, you are welcome.
Regards
samvedan
February 10, 2009
------------------