Is My Bonus Fair? Seeking Advice on Bonus Calculation for Casual Work in Haryana

Sir,

I am an IT Incharge working in Haryana. My question is, I had worked in a Pvt. Firm in Bahadurgarh (Haryana) on a casual basis, not in a company role. Now, the bonus has been paid to me based on my basic salary. I did not receive other benefits like PF, ESI, or leaves while working there. When I resigned, during the full and final payment, they provided a bonus on the basic salary at Rs. 3000/-. I want to know if this is correct or if I should receive payment based on my full gross salary. Can I approach the labor court to claim bonus payment based on my full salary because I was not in a company role at that firm? Please suggest what I should do.

My salary there was Rs. 6500/- per month only during the casual period.

Hi,

Currently, the eligibility for the Act is Rs 10,000 per month (Basic + DA). The payability for the act is Rs 3,500. As per my understanding, employees whose salary exceeds Rs 3,500 but is less than Rs 10,000 shall be taken as Rs 3,500. The minimum bonus percentage is 8.33%, and the maximum is 20%. For example, an employee whose salary is Rs 6,500 will also receive a bonus based on Rs 3,500 only.

For employees earning Basic + DA above Rs 10,000, they receive ex-gratia, and the ex-gratia amount is at the discretion of the company with no limit. I would appreciate other comments on whether I am correct or incorrect.

Regards,
Shweta

Thanks Sukhpal,

In regards to Ex-gratia, I believe that there is no limit on ex-gratia; the management can give it or may not give it to an employee. If the management gives ex-gratia, then it can be any amount. Ex-gratia is a PERQUISITE. That means it is not compulsory to give it. If an employer wants to give the benefit of a bonus to those employees whose Basic + DA is more than Rs 10,000, then this benefit is called Ex-gratia. NO CEILING IS PRESENT ON EX-GRATIA.

Regards,
Shweta

Hi,

After completion of 5 years of continuous service, an employee is eligible for a bonus, whether the company earns a profit or not. The minimum statutory bonus at 8.33% needs to be paid as per the Payment of Bonus Act, and the maximum is 20%. This provision is not applicable to new establishments until they start earning profits, which is commonly referred to as the gestation period of the company.

If we wish to reward the employee beyond the provisions of the Bonus Act, it is considered an ex-gratia payment. Such a payment is at the employer's discretion and is a goodwill gesture towards the employee. There is no ceiling on ex-gratia payments.

Regards,
Naresh

In Sec 31(A) of the Bonus Act, there is no limit on salary, and every employee can receive the productivity bonus.

Hi Shweta,

You are correct. The advice on Bonus as per Government norms is 8.33% or ₹3500/- for salaries below ₹10,000. Ex-gratia is set at 20% or more, based on the employer's choice.

Thanks,
Chander
HR Executive

If the company is profit-making in the fourth financial year, what percentage of bonus do we need to pay? Is it 8.33% or 20%? Do we need to file a return for the same?

Kindly guide.

Regards,
Madhura

Dear Madhur,

It all depends on the profits of the company. You have to pay a minimum of 8.33% and a maximum of up to 20%; this is the ceiling limit of the bonus. You have to file annual returns in Form D to ALC/DLC, the region for which you will be notified as per government rules.

The below site will help you to have a glance: [THE BUILDING AND OTHER CONSTRUCTION WORKERS ACT, 1996 :: OFFICE OF THE LABOUR COMMISSIONER, GOVERNMENT OF NCT OF DELHI](http://delhigovt.nic.in#1)

Regards,
DN