Need Help Crafting an Urgent Bonus Policy for Our Auto Dealership – Any Suggestions?

Dear All,

I am working in an automobile dealership and I have to insert a bonus policy in our HR policy manual. Can anyone forward me the latest bonus policy for my organization? It's urgent.

Thanks & Regards,
Shraddha Shukla

1. It depends on the percentage on which the company wants to give a bonus to its employees. The minimum bonus is 8.33% of the basic salary earned during the accounting year, and the maximum is 20% under the Payment of Bonus Act, 1965.

2. Eligibility: Bonus under the Payment of Bonus Act, 1965 is required to be given to employees whose salary (Basic) is less than Rs. 3500.00 per month during the accounting year for which the bonus is to be paid.

3. Bonus is to be calculated for eligible employees assuming the salary (Basic) as Rs. 2500.00 per month or less. If it is less than Rs. 2500.00.

With Regards,
Dipak

Dear Dipak,

Please note that there are some amendments that have been made to the Payment of Bonus Act. The amendments in various sections are as follows:

i) Amendment to Section 2(13): To raise the eligibility limit for payment of bonus from the salary or wage of Rs. 3500 to Rs. 10,000 per month.
ii) Amendment to Section 12: To raise the ceiling for calculation purposes from the salary or wage of Rs. 2500 to Rs. 3500 per month.
iii) Deletion of Section 32(vi): To cover the employees employed through contractors on building operations.

I hope this information will be helpful to you.

Regards,
Hitesh