Hi All, Can any of you confirm as to what is the minimum bonus limit irrespective of whatever the designation is? It is most urgent. Thanks & Regds, Mangala
From United States, Cambridge
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From United States, Cambridge
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Hi Mangala,
According to this gazette notification (which is appended at the end of this mail), every employee who was earning Basic (+DA) equal to or less than 10,000/- p.m. will come under the purview of the act, and the same employee would be entitled to a bonus to the maximum of Rs. 3,500/= (if the % of the bonus declared is @ 8.33%).
Cheers,
Suneel.
From India, Bangalore
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4According to this gazette notification (which is appended at the end of this mail), every employee who was earning Basic (+DA) equal to or less than 10,000/- p.m. will come under the purview of the act, and the same employee would be entitled to a bonus to the maximum of Rs. 3,500/= (if the % of the bonus declared is @ 8.33%).
Cheers,
Suneel.
From India, Bangalore
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According to the latest amendment (PROPOSED) to the Payment of Bonus Act, those drawing a salary not more than Rs 10,000 are eligible to get a bonus at the agreed-upon rate. However, the bonus of those whose salary ranges between Rs 3,500 and Rs 10,000 will be calculated as if their salary were Rs 3,500 only. The minimum rate of bonus is 8.33%, and the maximum rate is 20%.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Hi Mangala,
Please note that the bonus is to be paid to those whose basic is up to 10,000/-. The calculation should be done on 3500/- only. The minimum is 8.33%, and the maximum is 20% as per the act. Also, note that in the case of a person whose basic is 5000/-, you have to calculate on 3500/- only.
If a person's basic is more than 3500/- and there is a loss of pay, then you have to proportionately reduce it to 3500/-. For example, if an employee's basic is 6000/- and in the month of March, he had LOP for 3 days, then you have to calculate 3500/- divided by 31 days (March month). It will be 3161/-. On Rs. 3161, you have to calculate a bonus of 8.33%, which will work out as Rs. 263/- for that month.
The bonus calculation is on a financial year basis, i.e., from 1st April to 31st March.
I hope this clears your doubts.
Prabhakar Rao.M
From India, Delhi
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Please note that the bonus is to be paid to those whose basic is up to 10,000/-. The calculation should be done on 3500/- only. The minimum is 8.33%, and the maximum is 20% as per the act. Also, note that in the case of a person whose basic is 5000/-, you have to calculate on 3500/- only.
If a person's basic is more than 3500/- and there is a loss of pay, then you have to proportionately reduce it to 3500/-. For example, if an employee's basic is 6000/- and in the month of March, he had LOP for 3 days, then you have to calculate 3500/- divided by 31 days (March month). It will be 3161/-. On Rs. 3161, you have to calculate a bonus of 8.33%, which will work out as Rs. 263/- for that month.
The bonus calculation is on a financial year basis, i.e., from 1st April to 31st March.
I hope this clears your doubts.
Prabhakar Rao.M
From India, Delhi
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Hi, in case basic is more than ₹10,000, the employer is under no obligation to pay the bonus as per the act. However, many companies typically pay a bonus to employees who do not qualify under the bonus act, under the heading of Ex Gratia.
Regards,
M. Prabhakar Rao
From India, Delhi
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Regards,
M. Prabhakar Rao
From India, Delhi
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Statistics on violations Minimum Wages-Bonus Act.doc
Amendment to Payment of Bonus Act 2015.jpg