pls let me know the ceiling limit for payment of bonus at present. is it still 3500/- or enhanced to 5000/-
From India, Vijayawada
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3From India, Vijayawada
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No, the bonus salary ceiling limit is still Rs. 3500 per month. If we calculate the bonus as per the ceiling salary, then in case of 8.33% (minimum bonus to be paid), it amounts to Rs. 3499, and for 20% (maximum bonus that can be paid), it amounts to Rs. 8400 only.
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From India, Kumbakonam
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You can find more details by using the search option available at the top of this page. Furthermore, if you are not satisfied, you can check the sidebar on the right side where you can find the relevant threads that were discussed earlier.
From India, Kumbakonam
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There has been no change in the ceiling for payment of Statutory Bonus. It continues to be Rs 3,500/-.
From India, Delhi
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From India, Delhi
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This is strange. When salary levels have gone up multifold, the Bonus Act still talks of only Rs. 3500/- as the ceiling limit. This is just unacceptable from everybody's view. Why trade unions are keeping silent on this is not understood.
From India, Bangalore
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From India, Bangalore
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Dear friends, Ceiling limit on salary for the eligibility for bonus is not Rs. 3500, but Rs. 10,000. But the for bonus calculation salary upto Rs. 3500 willo be taken into account. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Dear Supreme_1974 & Dbalaji3,
Statutory Bonus is mainly concerned with the workmen category who come under the Contract Labour Act or minimum wages Act. Please do not compare your salary for Bonus. The salary of minimum wage workmen is comparatively low, and Rs. 3,500/- is a good amount for them. Earlier, the Bonus was applicable to employees whose basic was Rs. 3,500/-; however, it has been enhanced to Rs. 10,000/- in the year 2007 to cover more employees (even though the ceiling limit is 3,500/-).
Thank you.
From India, Mumbai
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Statutory Bonus is mainly concerned with the workmen category who come under the Contract Labour Act or minimum wages Act. Please do not compare your salary for Bonus. The salary of minimum wage workmen is comparatively low, and Rs. 3,500/- is a good amount for them. Earlier, the Bonus was applicable to employees whose basic was Rs. 3,500/-; however, it has been enhanced to Rs. 10,000/- in the year 2007 to cover more employees (even though the ceiling limit is 3,500/-).
Thank you.
From India, Mumbai
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Dear Supreme,
Computation of bonus should be worked out as per Schedule I to IV of the Act. Every person drawing a salary between Rs 3500 and Rs 10,000 per month. The bonus payable to him is to be calculated as if his salary were Rs 3500 per month. Till date, there has not been any enhancement to Rs 5000 per month.
Thanks & Regards,
V K Sharma
HR, Tarapur
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Computation of bonus should be worked out as per Schedule I to IV of the Act. Every person drawing a salary between Rs 3500 and Rs 10,000 per month. The bonus payable to him is to be calculated as if his salary were Rs 3500 per month. Till date, there has not been any enhancement to Rs 5000 per month.
Thanks & Regards,
V K Sharma
HR, Tarapur
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Can anybody clarify why the deduction for ESIC is Gross Amount 15000/-? We have many laborers working under a contractor who earn more than 15000/- per month. There should not be any limit for working under a contractor, and ESIC provides medical benefits for laborers. Can anybody elaborate more on this?
Ramesh Dept. of Accounts TPL, RSP, Rourkela
From India, Rourkela
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Ramesh Dept. of Accounts TPL, RSP, Rourkela
From India, Rourkela
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Dear All,
My opinion after going through this conversation is that the Payment of Bonus Act, after amendment, now covers a large number of employees. This is a good thing for us. Before the amendment, we only calculated based on a salary limit of Rs. 2500, whereas now the limit is Rs. 3500.
With regards,
Madhuresh
From India, Kumar
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My opinion after going through this conversation is that the Payment of Bonus Act, after amendment, now covers a large number of employees. This is a good thing for us. Before the amendment, we only calculated based on a salary limit of Rs. 2500, whereas now the limit is Rs. 3500.
With regards,
Madhuresh
From India, Kumar
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Yes it is good thing, but only thing is the lowest ceiling limit should be around 5000 or it should be 8.33% of basic+da.
From India, Vijayawada
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From India, Vijayawada
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Kindly guide me on this, my salary detais basic-7000, da 2500, hra 3250, c a 2000,medical allowance-500 & canteen allowance-250 total 15500 so am i not applicable for bonus
From India, Kaiga
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From India, Kaiga
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Kindly guide me on this, my salary details: basic - $7000, DA - $2500, House Rent Allowance - $3250, Conveyance Allowance - $2000, Medical Allowance - $500, and Canteen Allowance - $250. Total is $15500. Am I not eligible for a bonus?
Thank you for your assistance.
From India, Kaiga
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Thank you for your assistance.
From India, Kaiga
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Kindly guide me on this, my salary details:
Basic - $7000, DA - $2500, House Rent Allowance - $3250, Conveyance Allowance - $2000, Medical Allowance - $500, and Canteen Allowance - $250, totaling $15500. So, am I not eligible for a bonus?
From India, Kaiga
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Basic - $7000, DA - $2500, House Rent Allowance - $3250, Conveyance Allowance - $2000, Medical Allowance - $500, and Canteen Allowance - $250, totaling $15500. So, am I not eligible for a bonus?
From India, Kaiga
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Dear Antoajay,
An employee is eligible to get a bonus only when he has worked for 30 working days in that year and is drawing wages up to Rs. 10,000 per month or less. Wages mean Basic + DA.
In your case, you are drawing Rs. 9500 (Basic + DA) wage per month. Therefore, you are eligible for the bonus.
I have also enclosed an excel sheet to determine eligibility for a bonus based on monthly salary.
From India, Pune
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An employee is eligible to get a bonus only when he has worked for 30 working days in that year and is drawing wages up to Rs. 10,000 per month or less. Wages mean Basic + DA.
In your case, you are drawing Rs. 9500 (Basic + DA) wage per month. Therefore, you are eligible for the bonus.
I have also enclosed an excel sheet to determine eligibility for a bonus based on monthly salary.
From India, Pune
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NMC Quality Consultants, Chennai
The site has amply made it clear that Bonus is Statutory and is a must to keep the employees free from other social pressures. However, there is a better method. Looking after the social needs of the family works better than a bonus in terms of employee retention. A proven method even before five decades by none other than Shri. Gurumoorthy of Ms. SIMSON GROUP, Tamil Nadu. He was then the first to get Max Bonus in entire India to the entire group. All these are not by fighting but by proven and committed output from the employees. And we can fill pages over successes of the group before the political interference by a state party. Even today, many industries suffer under political rival unions.
The best method could be to take care of the educational and a few important social obligations like family health and happiness (Deepali, New Year, and alike, Leave Travel Concession, etc.), which would give a major bond and would help in employee retention with commitment. Certainly, a compromising formula could be worked out with the employees' participative body (non-political Union).
My suggestion to some small industries in this regard had worked well for them as well as the employees.
Muthukrishnan
From India, Madras
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The site has amply made it clear that Bonus is Statutory and is a must to keep the employees free from other social pressures. However, there is a better method. Looking after the social needs of the family works better than a bonus in terms of employee retention. A proven method even before five decades by none other than Shri. Gurumoorthy of Ms. SIMSON GROUP, Tamil Nadu. He was then the first to get Max Bonus in entire India to the entire group. All these are not by fighting but by proven and committed output from the employees. And we can fill pages over successes of the group before the political interference by a state party. Even today, many industries suffer under political rival unions.
The best method could be to take care of the educational and a few important social obligations like family health and happiness (Deepali, New Year, and alike, Leave Travel Concession, etc.), which would give a major bond and would help in employee retention with commitment. Certainly, a compromising formula could be worked out with the employees' participative body (non-political Union).
My suggestion to some small industries in this regard had worked well for them as well as the employees.
Muthukrishnan
From India, Madras
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Dear all , please guide me if any employee with (basic+da) of rs.3700 then bonus to be calculated on rs.3500 or on rs.3700? Ajay
From India, Kaiga
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From India, Kaiga
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Dear Ajay, As already clarified by the members bonus is to be calculated considering the salary as Rs. 3500/- per month. Regards, R N KHOLA
From India, Delhi
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From India, Delhi
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bonus will be calculated on the basis of basic + D.A or total gross salary
From India, Bangalore
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From India, Bangalore
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Dear All pls let me know, if any employee basic salary Rs.90000 p.m , so he eligible or not for bonus ?
From India, Rajkot
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From India, Rajkot
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