Is it compulsory to pay bonus to all employees? What is the minimum & maximum %?

Sir, Can any one help me to know how to calculate bonus for the employees...
1. Is it compulsory to pay bonus to all employees?
2. Who is eligible to get bonus?
3. What is the minimum & maximum %?
4. Please guide me on the entire calculation...
Regards,
Karthik P

dear
an employee whose basic wages is upto Rs10000/- are eligible to get bonus.minimum 30 days service is requd to get bonus.ninimum bonus is 8.33% and max 20% of basic ,decided as per allocable surplus.
the calculation of bonus is done on 3500/-
tks
j s malik

i agree with malik but the caliculation is done on 3500 who's employees have more than 3500 basic wage(3501 - 10000),and remaining are caliculated actual basic wage.more than 10001 basic wage employees are not eligible for bonus.

Dear Karthik,
I have something which would help u.
Good Luck!!
Regards
Vipin

Sir,
Can any one help me in giving an format of bonus calculation
For Examlple if the basic + DA is 3500, 4000, 6000, to 10000, its an example.
Please Help me
Regards,
KarthiK

Hi Karthi,

Here are the points on payment and coverage of bonus under the act:

1. Coverage: Any employee who draws salary/wage (Basic+DA) less than Rs. 10000/- per month will now due to this amendment be covered as an employee under the Payment of Bonus Act 1965. (In past this limit was Rs. 3500/- per month (Basic+DA)

2. The percentage of bonus is a derived percentage from the method prescribed under the act (of calculating Gross Profit, Available Surplus and the Allocable Surplus and then the percentage of Bonus that can be paid.

3. The law stipulates that even when the company makes a loss, it is obliged to pay a bouns of 8.33% and whatever the profits the company cannot pay bonus exceeding 20% The first is called the Statutory Minimum Bonus and the other is called the statutory Maximum Bonus. Subject to other provisions of the act the percentage of bonus varies between these two levels.

4. The rule is that the calculated bonus is to be paid on the actual salary/wage (Basic+DA) upto (now) Rs. 3500/- (In past this limit was Rs. 2500/-) and the maximum salary/wage (Baisc+DA) on which bonus can be paid is Rs. 3500/- (In past this limit was Rs. 2500/-

5. Therefore if the calculated bonus was 20% then in past an employee drawing salary/wage between Rs. 2500/- and Rs. 3500/- per month would get Rs. 6000/- as Bonus (i.e. 2500*12*20%) and now he would get Rs. 8400/- under same conditions.
(i,e, 3500*12*20%)

6. A suitable provision shall be made in the books of accounts as on 31 March every year and get it paid with in a period of 9 month from the closure of the relevant financial year.

Regards,

Anurag Jain

Hi
When it will be applicable, can you let us know detailed idea about the Bonus
Cheers
Venkat

Hi All,
I have few more queries about payment of Bonus:

• Penalty of non payment of bonus is 6months imprisonment or fine up to 1000 as per the Act….is it the updated one?
• Which department is responsible for maintaining register or record for available or allocable surplus? Is it HR or Accounts?
• Is it acceptable if a company pays 8.33% of 3500 to employees who’s basic is less than 10,000 without maintaining any register or record for available or allocable surplus?
• Which Gov. Dept. can enquire for payment of Bonus? …Shops & Establishment Inspector? or Sales Tax Officer?

I look forward for expert’s opinion.

i have little bit confusion in calculation of bonus...am agree with that we take 3500/- as per calulation but if a person drawaing salary like 6000/- hw should calculate taking 6000/- or 3500/-n as standard?
Gaurav

Superb clarity in the postings of Anurag Jain and very good attachment by Vipin Manav.
Karthik may read Payment of Bonus Act and look into any worked out problem. Its very easy to understand rather than asking thro mails and postings.
Gopan