Is Your NGO Covered Under the Bonus Act? Seeking Guidance on Ex-Gratia Payments

Dear All,

I am an employee of a renowned NGO. Kindly guide me if any NGO is covered under the Bonus Act. I am receiving ex-gratia at 4.16% per annum, which is included in my CTC.

With Regards,
Rakesh Dubey

Can anyone provide the amendment copy regarding the amendment in the Bonus Act for increasing the limit for covering the employees' salary from 3500/- to 10000/-? Also, details regarding non-submission of Bonus return penalties for previous years.

Regards,
CA Mrattunjay

Dear,

A copy of the amendment notification is not with me, but you can purchase the latest bare act of bonus where this amendment is already included.

Do not worry if you have not sent Form D, which is the bonus return for the years 2006-07; the return for the year 2007-08 will be sent after the distribution of bonuses.

However, as you asked, the penalties specified in the act are a $500 fine, 3 months imprisonment, or both, although this has never happened. So, enjoy and do not worry.

Thank you,
J.S. Malik

Dear Mr. Mattunjay,

Attached please find the amendment in the Bonus Act. The eligible salary for the bonus calculation is now Rs. 10,000, and the bonus calculation salary is Rs. 3,500.00.

Thanks,
Mohd. Arif Khan

Hi,
I am Ganesh. I am a silent member of Cite HR and I am having a query related to the payment of Bonus. I am working in a private limited company, and there they are paying statutory bonus to staff. They have paid a bonus to the staff whose salary (basic + HRA) is less than Rs. 10,000. But as per my knowledge, while calculating the bonus, we have to consider the basic salary and not BASIC + HRA. They are quoting the Bonus Act and claiming that nothing was mentioned in the act that HRA should not be taken into account.
Can anybody help me with this, and are there any case laws relating to this?
Regards,
M. Ganesh.

The Hon'ble President of India has promulgated the Payment of Bonus (Amendment) Ordinance, 2007 containing the following amendments:

1. Amendment to clause (13) of section 2 of the Payment of Bonus Act, 1965 to raise the eligibility limit for Payment of Bonus from the salary (Pay + DA) or wage of Rs. 3500/- per month to Rs. 10,000/- per month.
2. Amendment to section 12 of the Payment of Bonus Act, 1965 to raise the ceiling limit for Payment of Bonus from Rs. 2,500/- to Rs. 3,500/-
3. The ordinance shall be deemed to have come into force on 1st April 2006.
4. As per the Act, the minimum Bonus is 8.33% of wages per month, and the maximum ceiling is 20%. Hence, the minimum amount eligible is Rs. 3500/-, but it was earlier Rs. 2500/-.

Is there any specification as to what should be your bonus for the Bonus Act (as our company has books prepared for January 1st to December 31st)? Can we pay the bonus by August of next year, as I saw 8 months from the day of closure of books?