I'm working with a construction company, and they are disbursing a bonus for 2011-2012 this month. It's calculated for the calendar year January 2011 to December 2011. I joined the company on 7th September 2011, and this company isn't giving me a bonus by saying I haven't completed six months of the calendar year. Is it genuine? Please guide me.
From India, Bhubaneswar
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1From India, Bhubaneswar
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According to the Bonus Act, the bonus is paid for the previous financial year and is payable to the person who has completed 30 days in the previous financial year. There is no provision for the calendar year.
Regards,
Bipin Supekar
From India, Nasik
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Regards,
Bipin Supekar
From India, Nasik
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Dear Bucha, Only who are drawing the basic wages below 10,000/- Rupees thet are covered under bonus act. Bonus Eligiblity only -30 days proceding 12 months. Minimum-8.33% Maximum-20%. Regards Murthy
From India, Hyderabad
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From India, Hyderabad
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Hey friends, I wanted to inform you all that I discussed the above matter with the HR Manager as per your guidance, and they are granting me a bonus amount of Rs. 1167. My basic salary is Rs. 8335, and as mentioned earlier, I joined the organization on 7th September 2011. Can anybody guide me on how this amount has been calculated? I inquired with the HRM, but unfortunately, he avoided the question. I am eagerly awaiting your reply, friends. Thank you.
From India, Bhubaneswar
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From India, Bhubaneswar
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Dear Member The amount you have mentioned is not coming under the standard calculation practices. Would like to know the % of bonus declared. Regards Preetam Deshpande
From India, Mumbai
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From India, Mumbai
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Dear Friend,
Regarding your query about the confusion in getting a bonus, I suggest one thing: you joined the company on September 7, 2011. Bonuses are calculated based on the accounting year, i.e., April 1, 2011, to March 31, 2012, not the calendar year. I am sure that if your basic salary does not exceed Rs. 10,000, you are eligible to receive a bonus as per the Bonus Act. For your information, the bonus is calculated based on whatever salary or wages were earned in the accounting year. For example, if your basic salary is Rs. 8000 x 7 months (September 2011 to March 2012) = Rs. 56,000 x 8.33% = Rs. 4,665, you will definitely get the bonus. The company may offer a higher bonus as per its policy, but according to the Bonus Act, the above calculation is correct, and you are eligible for a bonus.
Regards,
Anant Bhosle
From India, Mumbai
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Regarding your query about the confusion in getting a bonus, I suggest one thing: you joined the company on September 7, 2011. Bonuses are calculated based on the accounting year, i.e., April 1, 2011, to March 31, 2012, not the calendar year. I am sure that if your basic salary does not exceed Rs. 10,000, you are eligible to receive a bonus as per the Bonus Act. For your information, the bonus is calculated based on whatever salary or wages were earned in the accounting year. For example, if your basic salary is Rs. 8000 x 7 months (September 2011 to March 2012) = Rs. 56,000 x 8.33% = Rs. 4,665, you will definitely get the bonus. The company may offer a higher bonus as per its policy, but according to the Bonus Act, the above calculation is correct, and you are eligible for a bonus.
Regards,
Anant Bhosle
From India, Mumbai
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Your topic has been sufficiently answered by my friends above. If you still have a doubt, there's a similar discussion from earlier times which can be found https://www.citehr.com/434492-want-k...companies.html.
The discussion also includes a copy of the Payment of Bonus Act to give you a clear picture of almost everything you need to know about the Payment of Bonus Act.
From India, Pune
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The discussion also includes a copy of the Payment of Bonus Act to give you a clear picture of almost everything you need to know about the Payment of Bonus Act.
From India, Pune
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Payment of Bonus Act, 1965
The Payment of Bonus Act, 1965 was enacted to provide for the payment of bonuses to persons employed in certain establishments based on profits or productivity and for matters connected therewith. The Act applies to: (i) every factory as defined under the Factories Act, 1948; and (ii) every other establishment in which twenty or more persons are employed on any day during an accounting year. However, the Government may, after giving two months' notification in the Official Gazette, make the Act applicable to any factory or establishment employing less than twenty but not less than ten persons.
The Act is enforced through the Central Industrial Relations Machinery. CIRM is an attached office of the Ministry of Labour and is also known as the Chief Labour Commissioner (Central) [CLC(C)]. It is headed by the Chief Labour Commissioner (Central).
Key Provisions of the Act
1) According to the Act, the term 'employee' means "any person employed on a salary or wage not exceeding three thousand and five hundred 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."
2) An employee is entitled to be paid by his employer a bonus in an accounting year subject to the condition that he/she has worked for not less than 30 working days of that year.
3) An employer shall pay a minimum bonus at the rate of 8.33% of the salary or wages earned by an employee in a year or one hundred rupees, whichever is higher. Here it is not required that the employer has any allocable surplus in the accounting year. However, where an employee has not completed fifteen years of age at the beginning of the accounting year, the minimum bonus payable is 8.33% or sixty rupees, whichever is higher.
4) In any accounting year, if the allocable surplus exceeds the amount of minimum bonus payable to the employees, the employer shall, in lieu of such minimum bonus, be bound to pay a bonus (maximum bonus) equivalent to the amount which shall not exceed 20% of the salary or wages earned by employees.
5) In computing the allocable surplus, the amount set on or the amount set off shall be taken into account. In other words: (i) If, in any accounting year, the allocable surplus exceeds the amount of the maximum bonus payable to the employees in the establishment, then the excess surplus is carried forward to be set on in the succeeding accounting year and so on up to and inclusive of the fourth accounting year for the purpose of payment of bonus; or (ii) If there is no or less allocable surplus in respect of that year, then such a shortfall is carried forward to be set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year.
6) Where in any accounting year, any amount has been carried forward and set on or set off, then in calculating bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest accounting year shall first be taken into account.
7) All amounts payable to an employee by way of bonus under this Act shall be paid in cash by his employer within a month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of any dispute regarding payment of bonus. But, in any other case, it shall be paid within a period of eight months from the close of the accounting year. However, the Government may order, upon receiving an application made to it by the employer and for sufficient reasons, to extend the said period of eight months to such further period or periods as it thinks fit, such that the total period so extended shall not, in any case, exceed two years.
8) An employee shall be disqualified from receiving a bonus if he/she is dismissed from service for: (i) fraud; or (ii) riotous or violent behavior while on the premises of the establishment; or (iii) theft, misappropriation, or sabotage of any property of the establishment.
Regards,
Anita
From India, Mumbai
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The Payment of Bonus Act, 1965 was enacted to provide for the payment of bonuses to persons employed in certain establishments based on profits or productivity and for matters connected therewith. The Act applies to: (i) every factory as defined under the Factories Act, 1948; and (ii) every other establishment in which twenty or more persons are employed on any day during an accounting year. However, the Government may, after giving two months' notification in the Official Gazette, make the Act applicable to any factory or establishment employing less than twenty but not less than ten persons.
The Act is enforced through the Central Industrial Relations Machinery. CIRM is an attached office of the Ministry of Labour and is also known as the Chief Labour Commissioner (Central) [CLC(C)]. It is headed by the Chief Labour Commissioner (Central).
Key Provisions of the Act
1) According to the Act, the term 'employee' means "any person employed on a salary or wage not exceeding three thousand and five hundred 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."
2) An employee is entitled to be paid by his employer a bonus in an accounting year subject to the condition that he/she has worked for not less than 30 working days of that year.
3) An employer shall pay a minimum bonus at the rate of 8.33% of the salary or wages earned by an employee in a year or one hundred rupees, whichever is higher. Here it is not required that the employer has any allocable surplus in the accounting year. However, where an employee has not completed fifteen years of age at the beginning of the accounting year, the minimum bonus payable is 8.33% or sixty rupees, whichever is higher.
4) In any accounting year, if the allocable surplus exceeds the amount of minimum bonus payable to the employees, the employer shall, in lieu of such minimum bonus, be bound to pay a bonus (maximum bonus) equivalent to the amount which shall not exceed 20% of the salary or wages earned by employees.
5) In computing the allocable surplus, the amount set on or the amount set off shall be taken into account. In other words: (i) If, in any accounting year, the allocable surplus exceeds the amount of the maximum bonus payable to the employees in the establishment, then the excess surplus is carried forward to be set on in the succeeding accounting year and so on up to and inclusive of the fourth accounting year for the purpose of payment of bonus; or (ii) If there is no or less allocable surplus in respect of that year, then such a shortfall is carried forward to be set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year.
6) Where in any accounting year, any amount has been carried forward and set on or set off, then in calculating bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest accounting year shall first be taken into account.
7) All amounts payable to an employee by way of bonus under this Act shall be paid in cash by his employer within a month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of any dispute regarding payment of bonus. But, in any other case, it shall be paid within a period of eight months from the close of the accounting year. However, the Government may order, upon receiving an application made to it by the employer and for sufficient reasons, to extend the said period of eight months to such further period or periods as it thinks fit, such that the total period so extended shall not, in any case, exceed two years.
8) An employee shall be disqualified from receiving a bonus if he/she is dismissed from service for: (i) fraud; or (ii) riotous or violent behavior while on the premises of the establishment; or (iii) theft, misappropriation, or sabotage of any property of the establishment.
Regards,
Anita
From India, Mumbai
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THE PAYMENT OF BONUS ACT.doc