Understanding Bonus Eligibility and Calculation for 2009-2010: What Are the Minimum and Maximum Payouts?

Hi,

Employee Salary is Rs. 4500/- per month (Basic & DA) and worked for 12 months from Apr 09 to Mar 10. As per the Act, please clarify the following:

1. Is Bonus applicable?
2. What is the minimum bonus to be paid (8.33%)?
3. What is the maximum bonus to be paid (20%)?

Regards,
Haneef

Bonus is applicable for 30 days of working in a year.
- Minimum Limit: Rs. 3500/-
- Maximum Limit: Rs. 8400/-
- Minimum Limit for Bonus: 8.33% on Basic + DA (Special Allowance)
- Maximum Limit for Bonus: 20% or more as Management wishes.

Thanks

Dear Sir,

Suppose the Date of Joining of the Workman is 13th December 2009, and he resigned on 10th May 2010. He worked for 84 days from December 09 to March 10 and 12 days from April 10 to May 10.

Is he eligible for a bonus for April 10 to May 10? Please advise me.

Thanks/Regards,
Asish

As per the Payment of Bonus Act, he is entitled to a bonus. The minimum bonus is 8.33%, and the maximum bonus is 20%.

REGARDS

Hi!

We are engaging 15 contract laborers. The contract does not have a separate PF code number. Who is responsible for depositing the PF contribution?

Regards,

V. K. Sharma

Dear Shri Sharmaji,

If the contractor does not have an independent PF code, then the entire responsibility for PF compliance lies with you for the contract laborers working on your premises. There is no escaping from this.

Regards,
KK

If the contractor does not have a separate PF Code No., then it will be the responsibility of the principal employer to cover the contract employees (eligible employees) under the establishment's PF code No.