Bonus Act 1965 [Thread 495221]

Dear seniors,
I need one clarification under the payment of bonus Act that we have 150 employees, the payment bonus percentages minimum is 8.33 % and max 20%. My question is can we calculate the bonus percentage to same all employees or different percentage
1. “A” employee having 8.33 %
2. “ B” Employee having 12 %
3. “C” employee having 11%
We have follow this method . please let me its legally correct ?

Hi,
Which type of question is that one, you just keep that calculation matter in side and tell me what is the need to differntiate the employee that is the Bonus not Variable pay.
Bonus is giving on their performance, please let me know.
its not good practice.

The questioner should have given the specific reasons for such an arrangement; even then certainly it will be a matter of discrimination.

Dear Mr.Aditya,
For those employees whose performance or attendance records are not good, restricting the bonus to minimum 8.33%, And for those whose performance is better, it can be slightly higher based on the numbers right?

HI,
Ra7881
Let me know the meaning of Bonus? Then we can discuss on that matter.

Greetings
One cannot make any discrimination in payment of bonus. But it is possible tomake it at the time of appraisal. Please pay the minimum 8.33 % of of bonus to all the employees and declare the Exgratia amount to all the employees on the basis of their performance. In exgratia discrimination can be based on performance and no one can question. But in bonus you cannot discriminate.

My dear Anonymous,
I agree with Sh Bhaskar,our Super Moderator that we cannot have discrimination in payment of bonus under the Payment of Bonus Act,1965. An "employee" under Section 2(13) has been defined as any person (other than an apprentice) employed on a salary or wage not exceeding ten thousand rupees per mensem in any industry to do any skilled or unskilled manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied. As such you are free to decide any amount in the form of ex-gratia to the employees drawing salary more than Rs 10,000/-per month. Any discrimination in the payment of bonus otherwise would be illegal & unjustified.
BS Kalsi
Member since Aug 2011