Am I Eligible for a 2010-11 Bonus After Joining in December 2010? Seeking Advice

I would like to know whether I am eligible for a bonus for 2010-11 or not. I joined this organization in December 2010 and have been continuing since then. Kindly let me know, sir.

Thank you,

Dhanya Nair

This rule is followed by our company as well. They normally give 20%, but for those who have left, they give 8.33%.

SHAHEEN-ZAFAR,

First, tell me from which month you were added to the payroll or from which month your company started deducting your PF. If that month falls within April 2010 to March 2011, then you are eligible for the bonus for the year 2010-2011.

Dear all, if any employee joins as a trainee, they will not be eligible for a bonus. If an employee joins as a probationary employee, they will be eligible for the bonus period. However, the employee must work for 30 days to qualify for the particular bonus period.

Regards,
Gavaskar Thati
[Phone Number Removed For Privacy Reasons]

As per the Payment of Bonus Act, every employee who has completed 30 days of work in a year is eligible to receive a bonus for that year. Here, an employee is defined as any person who earns gross wages of 10,000 or less, which is covered under the Bonus Act. However, for the purpose of calculation, the salary threshold limit is set at 3,500 only. An employee can receive their minimum or maximum bonus based on the salary amount of 3,500, even if they earn more than 3,500. Bonuses may be paid based on this formula: (actual salary / 3,500 * min bonus 8.33% or max 20% * number of months worked in a year).

Thank you.

Since you joined in December 2010, you are eligible for a bonus as the period considered for the computation of the bonus is April 2010 to March 2011. Kindly inform me of your salary so that a decision can be made regarding whether a bonus should be paid to you or not.

Thanks & regards,

Sumit Kumar Saxena
[Phone Number Removed For Privacy Reasons], [Phone Number Removed For Privacy Reasons]

Since you joined in December 2010, you are eligible for a bonus as the period considered for the computation of the bonus is April 2010 - March 2011. Please inform me of your salary so that a decision can be made regarding whether a bonus should be paid to you or not.

Thanks & regards,

Sumit Kumar Saxena
[Phone Number Removed For Privacy Reasons], [Phone Number Removed For Privacy Reasons]

I am inquiring whether the bonus is applicable in the construction field. I work as an HR professional in the construction industry, and one of our laborers is claiming a bonus for working with us for one year. He is a local laborer and is threatening to report us to the labor commissioner if we do not comply. Given the nature of the construction field and the fluctuating work stability, I am unsure if it is feasible to provide a bonus. I kindly request your guidance on this matter.

Thank you,

Regards,
M. Hemakumar
[Phone Number Removed For Privacy Reasons]

Dear Gavaskar Thati, One small query, if a person joins on the 15th of March 2011, he will not be eligible for the 2010-11 bonus, as he is not completing 30 days in that bonus period. If he works for the full year in the next year, will this 15-day bonus be added when the next year's bonus is disbursed?

Regards,
Saurav Banerjee

Also, please let me know if the statutory bonus is taxable or non-taxable. That is 3500 * 20% * number of months in a year for the maximum statutory bonus or 3500 * 8.33% * number of months in a year for the minimum statutory bonus.

Regards,
Saurav Banerjee

Yes, you are entitled to a bonus. According to the Bonus Act, an employee who has completed 30 days in the last financial year is eligible for a bonus.

Dear HR, Thanks for your reply, but my query remains unattended.

Bonus Eligibility Query

1. If a person joins on the 15th of March 2011, he will not be eligible for the 2010-11 bonus as he has not completed 30 days in that bonus period. If he works for the full year in the next year, will this 15-day bonus be added when disbursing the bonus for the next year?

2. Is the statutory bonus taxable or non-taxable? For the maximum statutory bonus, is it calculated as 3500 * 20% * the number of months in a year, or for the minimum statutory bonus, is it calculated as 3500 * 8.33% * the number of months in a year?

Thank you.

It is up to 10,000. If the basic is a bonus, the bonus will be calculated as 3,500 on the basic salary.

Regards,
Saurav Banerjee

If a person who earns gross wages of more than $10,000, which could be around $30,000, would also be eligible for a bonus?

Eligibility for Bonus under The Payment of Bonus Act, 1965

As per the relevant provisions of The Payment of Bonus Act, 1965, employees who have completed a minimum of 30 days of service in an accounting year are eligible for a bonus. The minimum bonus amount is Rs. 100 or 8.33% of Basic and DA, whichever is higher.

Regards,
Sanu Soman
HR Manager

If an employee's salary up to December 2010 is less than $10,000 per month, and from January 2011 onwards is more than $10,000 per month, is he eligible for a bonus?

Thank you for your replies. My basic salary is Rs. 12,300, and my net salary is Rs. 14,000. Could you please inform me of the bonus amount for the months of December 2010 to March 2011?

Thank you,

Dhanya

You are covered under the Payment of Bonus Act, 1965 only if your basic salary is ₹10,000 per month or below.

Regards,
Ashok

If your salary, as defined under the Payment of Bonus Act, 1965, exceeds Rs 10,000/- per month, then you will not be entitled to receive a bonus starting from this month onward.

Eligibility for Bonus Based on Salary Changes

If an employee's salary up to December 2010 is less than Rs 10,000 per month, and from January 2011 onwards is more than Rs 10,000 per month, are they still eligible for a bonus?

Regards,
R.N. Khola
LL & IR
Skylark Associates
Gurgaon, Haryana

So you mean to say if a person is drawing their Basic + DA more than 10,000, then they will not be entitled to a bonus, right?

Regards,
Dhanya