Hi All,
As per the current Bonus act the employer's compulsory obligation to pay the bonus is limited to employees getting basic + DA up to Rs.10,000/- and amount of maximum bonus is Rs.3500/- for those getting salary between Rs.3500/- to Rs.10,000/- for employees getting less than Rs.3500/- shall be actual.
However, employer can pay the ex-gratia to the employees getting salary more that Rs.10,000/- as per their own choice.
All the best
M. S. Rawat
From India, New Delhi
As per the current Bonus act the employer's compulsory obligation to pay the bonus is limited to employees getting basic + DA up to Rs.10,000/- and amount of maximum bonus is Rs.3500/- for those getting salary between Rs.3500/- to Rs.10,000/- for employees getting less than Rs.3500/- shall be actual.
However, employer can pay the ex-gratia to the employees getting salary more that Rs.10,000/- as per their own choice.
All the best
M. S. Rawat
From India, New Delhi
A small correction though it is very important. It is always Basic Salary + Dearness Allowance and not Basic alone.
From India, Pune
31From India, Pune
Dear Neha,
For bonus distribution, first calculate the cosolidate payment @ minimum of the entitled employees. If somebody have not full attendance, pro-rata basis calculation is to be done.
For eg . 100 employees are in between a salary of Rs. 3500 and Rs.10,000 with full attendance. Their total amount @ 8.33% will be 3500 x 100 = 3,50,000 - (1)
10 employees in the same category with 6 months attendance - 10 x 3500 x6 / 12 = 17,500 - (2)
30 employees with a salary of Rs. 3000 with full attendance, total payment will be 30 x 3000 = 90,000 -(3)
5 employees with a salary of 3000 with 6 months attendance, payment will be 5 x 3000 x 6 / 12 = 7,500 -(4)
Consolidated payment of the above 145 employees @ 8.33% is 350000+17500+90000+7500 = 4,65,000, i.e (1)+(2)+(3)+(4)
If the allocable surplus is 6,00,000, then the percentage of Bonus will be (600000/465000) x (100/12) = 10.75%
Note : 8.33% is the decimal form of 1/12 and is equilent to 100/12. That is why the above calculation, i.e Allocable Surplus/Consolidated bonus payment @ 8.33% x (100/12)
Abbas.P.S
From India, Bangalore
For bonus distribution, first calculate the cosolidate payment @ minimum of the entitled employees. If somebody have not full attendance, pro-rata basis calculation is to be done.
For eg . 100 employees are in between a salary of Rs. 3500 and Rs.10,000 with full attendance. Their total amount @ 8.33% will be 3500 x 100 = 3,50,000 - (1)
10 employees in the same category with 6 months attendance - 10 x 3500 x6 / 12 = 17,500 - (2)
30 employees with a salary of Rs. 3000 with full attendance, total payment will be 30 x 3000 = 90,000 -(3)
5 employees with a salary of 3000 with 6 months attendance, payment will be 5 x 3000 x 6 / 12 = 7,500 -(4)
Consolidated payment of the above 145 employees @ 8.33% is 350000+17500+90000+7500 = 4,65,000, i.e (1)+(2)+(3)+(4)
If the allocable surplus is 6,00,000, then the percentage of Bonus will be (600000/465000) x (100/12) = 10.75%
Note : 8.33% is the decimal form of 1/12 and is equilent to 100/12. That is why the above calculation, i.e Allocable Surplus/Consolidated bonus payment @ 8.33% x (100/12)
Abbas.P.S
From India, Bangalore
Dear friends,
Abbas has given the way 2 get the percentage of bonus. pls. remember that to get the percentage of bonus u have to work out on gross profit of concern accounting year on computing the same as per sec.4(a) if urs is banking company or sec.4(b) for other companies,by which u shall receive gross profit for the year, then after deducting permissible deductions u shall find available surplus; further amount of allocable surplus on available surplus by 60%or 67% which is applicable as per entity of company, shall obtained.
Once u have find allocable surplus adopt the theory stated by Mr. Abbas to get right percentage of bonus.
Precisely, percentage of bonus is decided only through the balace-sheet, profit & loss account of the company and in case if not followed the set on will be always on hike to maximum percentage i.e. 20%, on the contrary if company continuously in loss, the percentage will be always on ground to minimum i.e.8.33%.
KIRAN KALE
From India, Kolhapur
Abbas has given the way 2 get the percentage of bonus. pls. remember that to get the percentage of bonus u have to work out on gross profit of concern accounting year on computing the same as per sec.4(a) if urs is banking company or sec.4(b) for other companies,by which u shall receive gross profit for the year, then after deducting permissible deductions u shall find available surplus; further amount of allocable surplus on available surplus by 60%or 67% which is applicable as per entity of company, shall obtained.
Once u have find allocable surplus adopt the theory stated by Mr. Abbas to get right percentage of bonus.
Precisely, percentage of bonus is decided only through the balace-sheet, profit & loss account of the company and in case if not followed the set on will be always on hike to maximum percentage i.e. 20%, on the contrary if company continuously in loss, the percentage will be always on ground to minimum i.e.8.33%.
KIRAN KALE
From India, Kolhapur
Dear All,
This is my first letter. My boss also acts as if he is very interested but cannot give bonus because of the rules.
Now, is there any other way he can give me extra money without either of us being taxed. Like, ex gratia, incentive, or any other term.
There are only 5 of them working in our company.
Kindly reply
Naveen
From India, Bangalore
This is my first letter. My boss also acts as if he is very interested but cannot give bonus because of the rules.
Now, is there any other way he can give me extra money without either of us being taxed. Like, ex gratia, incentive, or any other term.
There are only 5 of them working in our company.
Kindly reply
Naveen
From India, Bangalore
I am working in Construction co. here employee get full 1 salary as bonus at diwali. so for this if any employee is new then is he eligible for full 1 salary bonus or what?
or is there any criteria for tenure that 1 full salary bonus is applicable for those who are here for more than 12 monthsa. pls explain the eligibility...
Helly
From India, Pune
or is there any criteria for tenure that 1 full salary bonus is applicable for those who are here for more than 12 monthsa. pls explain the eligibility...
Helly
From India, Pune
Hi,
After gone through the Discussion one point was missing which need clarification:
As per provisions of bonus act 1965, the eligibility conditions is that one must have worked not less than 30 days of the year for elible for bonus.
My point of discussion is :
1. If person has joined on 5.3.2012 (FY 2012-13) , will he get bonus of FY 2011-12, if employee is still working in FY 12-13 or still working .
2. If the person left on 25.04.2013, will he get the bonus of FY 2013-14 in Full and Final Settlement and date of joining is 01.01.2010
My concern is : In both the conditions person has not completed minimum of 30 days in particular financial year but length of service is long say 3+ years.
Note : Need legal Answer not any practice of the organization.
Response awaited from all experts.
Best regards
Arun kumar
From India, Delhi
After gone through the Discussion one point was missing which need clarification:
As per provisions of bonus act 1965, the eligibility conditions is that one must have worked not less than 30 days of the year for elible for bonus.
My point of discussion is :
1. If person has joined on 5.3.2012 (FY 2012-13) , will he get bonus of FY 2011-12, if employee is still working in FY 12-13 or still working .
2. If the person left on 25.04.2013, will he get the bonus of FY 2013-14 in Full and Final Settlement and date of joining is 01.01.2010
My concern is : In both the conditions person has not completed minimum of 30 days in particular financial year but length of service is long say 3+ years.
Note : Need legal Answer not any practice of the organization.
Response awaited from all experts.
Best regards
Arun kumar
From India, Delhi
Dear Seniors,
As per the act section 2 (21) Salary or wage means all remuneration (Other than Over time work) capable being expressed in terms of money which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment including DA but done not include (i) any other allowance which the employee is for the time being entitled to;
please let me know what are the allowance not included in wage or salary, as it is not clear what are the allowance to exclude.
for example, if an employee is drawing a salary of Rs.18000/- and the breakup is as follows:
Basic + DA : 10000/-
HRA : 5000/-
Conveyance: 800/-
LTA : 833/-
Medical: 833/-
Spl Allowanace:534/-
for bonus eligibility we have to consider only basic + DA or total gross salary.
Please clarify me.
Thanking you
From India, Calcutta
As per the act section 2 (21) Salary or wage means all remuneration (Other than Over time work) capable being expressed in terms of money which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment including DA but done not include (i) any other allowance which the employee is for the time being entitled to;
please let me know what are the allowance not included in wage or salary, as it is not clear what are the allowance to exclude.
for example, if an employee is drawing a salary of Rs.18000/- and the breakup is as follows:
Basic + DA : 10000/-
HRA : 5000/-
Conveyance: 800/-
LTA : 833/-
Medical: 833/-
Spl Allowanace:534/-
for bonus eligibility we have to consider only basic + DA or total gross salary.
Please clarify me.
Thanking you
From India, Calcutta
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