For payment of bonus, is there an option to pay on 3500x12?
Section 12: Calculation of Bonus with Respect to Certain Employees
"Where the salary or wage of an employee exceeds [two thousand and five hundred rupees] per mensem, the bonus payable to such an employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were [two thousand and five hundred] per mensem."
From India, Pathanamthitta
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Section 12: Calculation of Bonus with Respect to Certain Employees
"Where the salary or wage of an employee exceeds [two thousand and five hundred rupees] per mensem, the bonus payable to such an employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were [two thousand and five hundred] per mensem."
From India, Pathanamthitta
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After the amendment of 2007, we are to read section 12 of the Payment of Bonus Act, 1965, as follows:
12. Calculation of bonus with respect to certain employees.
Where the salary or wage of an employee exceeds three thousand and five hundred rupees per mensem, the bonus payable to such an employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were three thousand and five hundred rupees per mensem.
Regards,
R.N. Khola (Labour Law Consultants)
From India, Delhi
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42212. Calculation of bonus with respect to certain employees.
Where the salary or wage of an employee exceeds three thousand and five hundred rupees per mensem, the bonus payable to such an employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were three thousand and five hundred rupees per mensem.
Regards,
R.N. Khola (Labour Law Consultants)
From India, Delhi
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Dear Member, after the amendment of 2007, we are to read section 12 of the Payment of Bonus Act, 1965, as follows.
12. Calculation of bonus with respect to certain employees. Where the salary or wage of an employee exceeds three thousand and five hundred rupees per mensem, the bonus payable to such an employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were three thousand and five hundred rupees per mensem.
Regards,
R.N. Khola
(Labour Law Consultants)
From India, Delhi
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12. Calculation of bonus with respect to certain employees. Where the salary or wage of an employee exceeds three thousand and five hundred rupees per mensem, the bonus payable to such an employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were three thousand and five hundred rupees per mensem.
Regards,
R.N. Khola
(Labour Law Consultants)
From India, Delhi
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I have come to know that the bonus ceiling of Rs. 3500/- is also being changed, and a bill has already been prepared and submitted. Can you shed some light on this?
Thanking you.
Regards,
R. K. Nair
From India, Aizawl
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Thanking you.
Regards,
R. K. Nair
From India, Aizawl
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Mr. Nair you are right!!! kindly find approved bill about amendment in Payment of Bonus Act. Confusion is only that by which accounting year the amendment will come in force?? Kalpesh
From India, Mumbai
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From India, Mumbai
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The said amendment in Paymaent of Bonus Act is in form of a bill only as it has not been passed by the parliament so there is no question of its coming into force as of now. regards, Kamal
From India, Pune
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From India, Pune
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Hi, Can any one provide me the details in "the payment of Bonus act 1965" that the employee resigned during the financial period are eligable for the bonus . As per the Act. with regards, vivek
From India, Barddhaman
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From India, Barddhaman
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Bonus Payment for Eligible Employees
Bonus, being a deferred wage, should be paid to all eligible employees who have left service during the financial year. An eligible employee refers to those whose salary did not exceed Rs. 10,000 and who had worked at least 30 days in the financial year.
The amendment has not been passed in Parliament. Once it is passed, it will be incorporated by way of an amendment to the Act, and only then will it become applicable.
Regards,
Madhu.T.K
From India, Kannur
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Bonus, being a deferred wage, should be paid to all eligible employees who have left service during the financial year. An eligible employee refers to those whose salary did not exceed Rs. 10,000 and who had worked at least 30 days in the financial year.
The amendment has not been passed in Parliament. Once it is passed, it will be incorporated by way of an amendment to the Act, and only then will it become applicable.
Regards,
Madhu.T.K
From India, Kannur
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As per Payment of Bonus Act, if any employee worked for 30 days in the preceeding 12 months period, then he shall be eligible for Bonus. Thanks. regards R K Nair
From India, Aizawl
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From India, Aizawl
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hi, This Amendment active from this year or so fare not approved? Regards Vijay Kumar Shetty 9986515380
From India, Bangalore
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From India, Bangalore
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According to Section 8 of the Payment of Bonus Act, 1965, this is thirty working days which may be read as under.
8. Eligibility for Bonus
Every employee shall be entitled to be paid by his employer in an accounting year, a bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
Regards,
R.N.Khola
From India, Delhi
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8. Eligibility for Bonus
Every employee shall be entitled to be paid by his employer in an accounting year, a bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
Regards,
R.N.Khola
From India, Delhi
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Hi, What if an employee had joined in between the year and during bonus he/ she had not completed one year service in that case is he/ she eligible for bonus. Regards, Shikha
From India, Delhi
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From India, Delhi
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Dear Shikha, as already clarified, one is required to work for only thirty days (thirty working days) in an accounting year for which a bonus is payable to the eligible employees. One year of service is not required to become eligible for getting a bonus. Please refer to section 8 for eligibility.
Regards,
R.N. Khola
(Labour Law Consultants)
From India, Delhi
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Regards,
R.N. Khola
(Labour Law Consultants)
From India, Delhi
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Let me explain to you about the days. If a person worked up to 30 April, then they are not eligible to receive the bonus because there will only be 26 working days. However, if a person worked up to 05 May, then they are eligible to receive the bonus because from 01 April to 05 May there will be 30 working days in the financial year.
Bonus Percentage Guidelines
The bonus should not be less than 8.33% and should not be more than 20%. The company cannot pay less than an 8.33% bonus. In case the company is paying in excess of that amount, then it is known as ex gratia (share on profit). The ex gratia will normally be paid to the worker whose salary is more than Rs. 10,000/- because they are not eligible for a bonus.
Hope I have cleared the doubt. In case of any further query, never hesitate to ask because knowledge develops when we start asking questions.
With warm regards,
S. Bhaskar
From India, Kumbakonam
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Bonus Percentage Guidelines
The bonus should not be less than 8.33% and should not be more than 20%. The company cannot pay less than an 8.33% bonus. In case the company is paying in excess of that amount, then it is known as ex gratia (share on profit). The ex gratia will normally be paid to the worker whose salary is more than Rs. 10,000/- because they are not eligible for a bonus.
Hope I have cleared the doubt. In case of any further query, never hesitate to ask because knowledge develops when we start asking questions.
With warm regards,
S. Bhaskar
From India, Kumbakonam
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Is it compulsory for us to pay a bonus to three employees of our apartment in Pune with salaries more than 4000 Rs? Does an apartment fall under the Bonus Act? It's not established for profit, and we have only 3 employees, so I was confused.
Thanks
From India, Pune
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Thanks
From India, Pune
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Kindly shed some light on the grey areas.
1) Is it mandatory to pay ex gratia to employees who have crossed the eligible limit as per the act?
2) We are an ITES organization, and we experience high attrition rates with young employees joining and quitting within a month. Are there any guidelines or statutory limits regarding bonus payments for these employees? Our consultant suggests that we could limit the salary to Rs. 3500, even if the bonus specified in the appointment order is Rs. 5000.
Awaiting your reply.
Regards,
Shaji
From India, Madras
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1) Is it mandatory to pay ex gratia to employees who have crossed the eligible limit as per the act?
2) We are an ITES organization, and we experience high attrition rates with young employees joining and quitting within a month. Are there any guidelines or statutory limits regarding bonus payments for these employees? Our consultant suggests that we could limit the salary to Rs. 3500, even if the bonus specified in the appointment order is Rs. 5000.
Awaiting your reply.
Regards,
Shaji
From India, Madras
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Understanding Salary Interpretations and Bonus Eligibility
There are different interpretations of salary, but the general principle is to consider the basic salary and dearness allowances. An employee with a basic salary and DA not exceeding 10,000 rupees becomes eligible for a bonus. However, the bonus will be calculated based on a salary of Rs 3,500 as per the law. It is possible for settlements to allow employees to receive a bonus based on their total salary as well.
Regards,
Madhu.T.K
From India, Kannur
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There are different interpretations of salary, but the general principle is to consider the basic salary and dearness allowances. An employee with a basic salary and DA not exceeding 10,000 rupees becomes eligible for a bonus. However, the bonus will be calculated based on a salary of Rs 3,500 as per the law. It is possible for settlements to allow employees to receive a bonus based on their total salary as well.
Regards,
Madhu.T.K
From India, Kannur
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