Dear Seniors, I am looking for information regarding the minimum and maximum eligibility (cut-off) for bonuses for employees. What are the conditions for bonus eligibility? Please help me find solutions to this matter.
Thank you,
Regards, GKS
From India, Mumbai
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Thank you,
Regards, GKS
From India, Mumbai
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Dear Sir As per my knowledge earlier minimum cut off of the Bonus Payable to any employee was Rs. 3500/-. But as on today may I know whether any new slab defined since we are running short of funds
From India, Mumbai
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From India, Mumbai
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Bonus Eligibility:
- (a) Must work a minimum of 30 days in the financial year.
- (b) Salary should be Rs. 10,000 or less.
- (c) The bonus must be calculated on the actual salary or a maximum of Rs. 3,500 per month (i.e., if the salary is above Rs. 3,500, then Rs. 3,500 must be taken into account for calculating the bonus amount).
- (d) In the case of a worker, the bonus can be calculated based on the number of days worked by the workmen.
Minimum and Maximum Bonus:
- Minimum bonus: 8.33% (Rs. 3,500) and Maximum bonus: 20% (Rs. 8,400).
Bonuses should be paid within 8 months during the next financial year (i.e., for the year 2010-11, the bonus must be paid on or before 30 November 2011).
I hope I have cleared your doubts. In case of any further doubts, please do not hesitate to raise your queries.
From India, Kumbakonam
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1189- (a) Must work a minimum of 30 days in the financial year.
- (b) Salary should be Rs. 10,000 or less.
- (c) The bonus must be calculated on the actual salary or a maximum of Rs. 3,500 per month (i.e., if the salary is above Rs. 3,500, then Rs. 3,500 must be taken into account for calculating the bonus amount).
- (d) In the case of a worker, the bonus can be calculated based on the number of days worked by the workmen.
Minimum and Maximum Bonus:
- Minimum bonus: 8.33% (Rs. 3,500) and Maximum bonus: 20% (Rs. 8,400).
Bonuses should be paid within 8 months during the next financial year (i.e., for the year 2010-11, the bonus must be paid on or before 30 November 2011).
I hope I have cleared your doubts. In case of any further doubts, please do not hesitate to raise your queries.
From India, Kumbakonam
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our company as a limited company & two contrator are appointed for labour supply pleasetell me for contractor casual employees applicable bonus yes or no thanks khaladkar r g
From India, Pune
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From India, Pune
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The contractor casual employees never work continuously for long durations; they will leave the company after working for 1 or 2 months. Even if bonus payments are made, they may not reach the concerned worker as they cannot be traced once they leave the organization. Hence, companies typically do not provide bonus payments for casual workers. However, company contractors are obligated to provide payment to casual workers, and any bonuses not received by the workers should be deposited with the Labor Commissioner's Office at the end of the financial year. If a worker approaches the Labor Office, the bonus amount held in their name will be released by the Labor Office after confirmation from the relevant authorities.
Kind regards
From India, Kumbakonam
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Kind regards
From India, Kumbakonam
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I wanted to ask my question with an example. Let's say a laborer joins on the 15th of October with a pay of Rs. 10,000 per month and works for two months, leaving on the 15th of December. Do I have to pay him a bonus? If yes, then how much should I pay him as a bonus, and how do I calculate it?
Please clarify...
From India, Hyderabad
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Please clarify...
From India, Hyderabad
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Normally, for the labour force, we calculate the bonus on a prorated basis. That is, Rs. 3500/total number of working days x number of days worked during the month for October, November, and December is the total basic wages. Then, find out 8.33%. After that, you can make the entry in Form C (Bonus Register) and prepare a voucher accordingly. Subsequently, make the payment along with the Final Settlement. You can endorse with red ink in his service certificate issued to him as Bonus for the FY 2011-12 is paid on _______ date along with F&F Settlement.
From India, Kumbakonam
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From India, Kumbakonam
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I am having a little bit of doubt about the line mentioned by you, which is "Minimum 8.33% (Rs.3500) and Maximum 20% (Rs.8400)." As it has been mentioned that the bonus would be given only in the case when the employee's salary is a maximum of Rs.10000 (Basic+HRA), but the slab would be taken as Rs.3500. This means that if the salary of the employee is 10000, in that case, his bonus would still be calculated on Rs.3500. The minimum bonus would be 8.33%, while the maximum would be 20% of Rs.3500.
I need to know the meaning of the point "Maximum 20% (Rs.8400)" because if the bonus is given at 20%, then it would be 20% of 3500, which would be 700. So, I request everyone to please clarify this point.
Warm Regards,
Shweta Singh
From India, Hyderabad
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I need to know the meaning of the point "Maximum 20% (Rs.8400)" because if the bonus is given at 20%, then it would be 20% of 3500, which would be 700. So, I request everyone to please clarify this point.
Warm Regards,
Shweta Singh
From India, Hyderabad
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Dear Ankurchi,
Normally, for the labour force, we calculate the bonus on a pro-rata basis. That is, Rs. 3500 divided by the total number of working days, multiplied by the number of days worked during the month for October, November, and December, gives the total basic wages. Then, find out 8.33%. You can then make the entry in Form C (Bonus Register) and prepare a voucher accordingly, making the payment along with the final settlement. You can endorse with red ink in his service certificate issued to him, noting that the bonus for the FY 2011-12 is paid on _______ date along with the F&F Settlement.
Thanks a lot, Sir, your reply clarified all my doubts. This will help me a lot. However, during the calculation, I got a bit confused. I calculated it as follows: Number of working days - 53, Number of days worked - 50. The labour's pay annually - Rs. 10,000 * 12 = Rs. 120,000/-. Then I got 8.33% of Rs. 120,000 = Rs. 9,996/-. On which again I did a calculation - (9996/53) * 50 = Rs. 9,430/-. Is Rs. 9,430/- his bonus? Or should I calculate keeping the minimum bonus only as follows: (3500/53) * 50 = Rs. 3,301. Which one is correct? Please correct me wherever I am wrong.
Regards
From India, Hyderabad
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Normally, for the labour force, we calculate the bonus on a pro-rata basis. That is, Rs. 3500 divided by the total number of working days, multiplied by the number of days worked during the month for October, November, and December, gives the total basic wages. Then, find out 8.33%. You can then make the entry in Form C (Bonus Register) and prepare a voucher accordingly, making the payment along with the final settlement. You can endorse with red ink in his service certificate issued to him, noting that the bonus for the FY 2011-12 is paid on _______ date along with the F&F Settlement.
Thanks a lot, Sir, your reply clarified all my doubts. This will help me a lot. However, during the calculation, I got a bit confused. I calculated it as follows: Number of working days - 53, Number of days worked - 50. The labour's pay annually - Rs. 10,000 * 12 = Rs. 120,000/-. Then I got 8.33% of Rs. 120,000 = Rs. 9,996/-. On which again I did a calculation - (9996/53) * 50 = Rs. 9,430/-. Is Rs. 9,430/- his bonus? Or should I calculate keeping the minimum bonus only as follows: (3500/53) * 50 = Rs. 3,301. Which one is correct? Please correct me wherever I am wrong.
Regards
From India, Hyderabad
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Ms. Shweta, the calculation is as follows: If a laborer has a monthly salary of Rs. 3500, then his annual salary will be 3500*12 = Rs. 42000. Now, if you calculate 8.33% of 42000, you will get Rs. 3498.60 (which is almost 3500), and 20% of 42000 is 8400.
Hope this clarifies your doubt.
Regards, Ankur
From India, Hyderabad
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Hope this clarifies your doubt.
Regards, Ankur
From India, Hyderabad
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S Bhasker is clearly said about bonus calculation and the eligibility part. Regards Sharad Choudhary
From India, Bhopal
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From India, Bhopal
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Dear Mr Khaldkar, As per the Payment of Bonus Act, as a principal employer you are liable to pay minimum Bonus as applicable for all eligible employees. JAGADEESHWARA SR. MANAGER HR HHV
From India, Bangalore
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From India, Bangalore
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Dear Friends If company not paying bonus so what we have to do in that case? Regards Vipin Bansal
From India, Gurgaon
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From India, Gurgaon
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Bonus Calculation Method Inquiry
In one company, the bonus is calculated based on the Net Salary. For example, if the net salary is $15,000, then the bonus would be calculated as $15,000 * 8.33% * the number of months worked.
Is this calculation method acceptable?
Thanks and Regards,
Trupti
From India, Bangalore
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In one company, the bonus is calculated based on the Net Salary. For example, if the net salary is $15,000, then the bonus would be calculated as $15,000 * 8.33% * the number of months worked.
Is this calculation method acceptable?
Thanks and Regards,
Trupti
From India, Bangalore
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Bonus Payment in Loss-Making Companies
If a private sector company is running at a loss, is it necessary to pay bonuses to employees? If it is necessary and the company management states that they are incurring losses and are unable to pay bonuses this Diwali, what should employees do?
Regards,
Vipin Bansal
From India, Gurgaon
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If a private sector company is running at a loss, is it necessary to pay bonuses to employees? If it is necessary and the company management states that they are incurring losses and are unable to pay bonuses this Diwali, what should employees do?
Regards,
Vipin Bansal
From India, Gurgaon
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As per the Payment of Bonus Act, employees whose salaries or wages are up to ₹10,000 per month and have worked for 30 working days in the financial year are eligible for a minimum bonus as follows: 3500 x 8.33% = ₹292 per month. Any amount paid beyond this by the employer will be considered as Ex-Gratia.
Bonus Payment Requirements
Once an organization comes under the purview of the Payment of Bonus Act, regardless of whether the company is in a loss or gain, it must pay a minimum bonus to the eligible employees within 8 months upon the completion of the accounting year, i.e., by 30.11.
Regards,
JAGADEESHWARA
From India, Bangalore
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Bonus Payment Requirements
Once an organization comes under the purview of the Payment of Bonus Act, regardless of whether the company is in a loss or gain, it must pay a minimum bonus to the eligible employees within 8 months upon the completion of the accounting year, i.e., by 30.11.
Regards,
JAGADEESHWARA
From India, Bangalore
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Earlier, the bonus had to be paid when the company earned an allocable surplus fund. Nowadays, the same clause has been amended, and the policy has changed. Whether the organization has an allocable surplus or not, it must pay a minimum of 8.33% (i.e., Rs.3499/-) as a bonus to all the workers/employees.
Regards
From India, Kumbakonam
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Regards
From India, Kumbakonam
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Yes, Seepa. All companies are required to pay a bonus to all employees engaged by them whose salary is less than Rs. 10,000. Nowadays, companies are opting to compensate their employees with Performance Linked Rewards (PLR) instead of a bonus. This change is beneficial as employees will take pride in earning the PLR rather than simply receiving it from the company. Additionally, the PLR serves as a motivating factor for employees to enhance their productivity and efficiency.
From India, Kumbakonam
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From India, Kumbakonam
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Can u plz tell me the calculation Bonus. Eg..5000 basic slab is 3500 x 12 Months x 8.33% =3498/- But he worked less then how we calculate his bonus..
From India
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From India
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Please calculate it on a month-wise basis, then total it to find out the annual bonus amount.
Rs. 3500 / (Number of working days in the month) * Number of days worked by the worker = Eligible Basic Pay for calculating the Bonus.
Add all the months he worked Basic Pay and then multiply it by the Percentage of Bonus declared by your company.
Hope you have understood the calculation method. Wish you all the best.
Regards.
From India, Kumbakonam
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Rs. 3500 / (Number of working days in the month) * Number of days worked by the worker = Eligible Basic Pay for calculating the Bonus.
Add all the months he worked Basic Pay and then multiply it by the Percentage of Bonus declared by your company.
Hope you have understood the calculation method. Wish you all the best.
Regards.
From India, Kumbakonam
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