Hi All Greetings Please guide me to prepare bonus for our employees. I would like to know full details and procedures about payment of bonus act. Regards Kanaka-Chennai
From India, Madras
From India, Madras
Dear Kanaka
Bonus to be paid under Payment of Bonus Act,1965 is to be calculated as under :
1. It depends upon the percentage on which your company wants to give bonus to its employees. Minimum bonus is 8.33% of basic salary earned during the accounting year and Maximum is 20% under the payment of Bonus Act,1965.
2. Eligibility : Bonus under Payment of Bonus Act,1965 is required to be to employees whose salary ( Basic) is of less than Rs.3500.00 per month during the accounting year for which bonus is to be paid.
3. Bonus is to be calculated for eligible employees assuming salary ( Basic) as Rs.2500.00 per month or less, if, it is less then Rs.2500.00
4.Multiply the yearly sum of salary thus worked out as per above clause 3 with rate of bonus. The figure is bonus payable to employee under the act.
5. Payment is to be made on Register prescribed under the act.
6. Return of payment of bonus is to be submitted with ALC or other designated authority under the act , within 30 days of payment of bonus to employees.
Regards
Anil Anand
From India, New Delhi
Bonus to be paid under Payment of Bonus Act,1965 is to be calculated as under :
1. It depends upon the percentage on which your company wants to give bonus to its employees. Minimum bonus is 8.33% of basic salary earned during the accounting year and Maximum is 20% under the payment of Bonus Act,1965.
2. Eligibility : Bonus under Payment of Bonus Act,1965 is required to be to employees whose salary ( Basic) is of less than Rs.3500.00 per month during the accounting year for which bonus is to be paid.
3. Bonus is to be calculated for eligible employees assuming salary ( Basic) as Rs.2500.00 per month or less, if, it is less then Rs.2500.00
4.Multiply the yearly sum of salary thus worked out as per above clause 3 with rate of bonus. The figure is bonus payable to employee under the act.
5. Payment is to be made on Register prescribed under the act.
6. Return of payment of bonus is to be submitted with ALC or other designated authority under the act , within 30 days of payment of bonus to employees.
Regards
Anil Anand
From India, New Delhi
Dear Ms Kanaka
In addition to above information you shauld keep in mind that we should calculate bonus on number of working days of employees in that period, ie, we should not take into cosideration leaves holidays & absentes for the purpose of calculating Bonus.
Bonus is payed only for the number of worked days from april to march of every eyer completed year which will become due after 9 months from the date of eligibility for payment.
Regards
Manu.
From India, Bangalore
In addition to above information you shauld keep in mind that we should calculate bonus on number of working days of employees in that period, ie, we should not take into cosideration leaves holidays & absentes for the purpose of calculating Bonus.
Bonus is payed only for the number of worked days from april to march of every eyer completed year which will become due after 9 months from the date of eligibility for payment.
Regards
Manu.
From India, Bangalore
Dear Mr. Manu
I need your help.
We have one employee who worked from April to March and his basic was Rs. 2700. In the month of october there was LWP for 2 days and besides 8 holidays (incl sundays & festival holidays) and actual total days was 29 and as per bonus act his working days 21. Can you please help in that case how do i calculate bonus.
From India, Gurgaon
I need your help.
We have one employee who worked from April to March and his basic was Rs. 2700. In the month of october there was LWP for 2 days and besides 8 holidays (incl sundays & festival holidays) and actual total days was 29 and as per bonus act his working days 21. Can you please help in that case how do i calculate bonus.
From India, Gurgaon
Dear Group,
I have an query , I am working with a company where nobodys basic below 5000/- then in that case no bonus as per act .
Do u suggest me then how we can give Bonus.........
Waiting eagerly 4 ur reply.
Warm Regards,
Mona
From India, Mumbai
I have an query , I am working with a company where nobodys basic below 5000/- then in that case no bonus as per act .
Do u suggest me then how we can give Bonus.........
Waiting eagerly 4 ur reply.
Warm Regards,
Mona
From India, Mumbai
hi
Under the act as 'BONUS ' no amount can be paid to an employee you have categorised..Any payment made is taxable .Some amounts are booked under ex gratia,special annual pay[taxable] or gifts[FBT applicable] and paid.ESOPs and rewards are others.
Today when CTC is calculated, due to the act limitation this component is included here and total pay announced.
hrg-rajaram
From United States
Under the act as 'BONUS ' no amount can be paid to an employee you have categorised..Any payment made is taxable .Some amounts are booked under ex gratia,special annual pay[taxable] or gifts[FBT applicable] and paid.ESOPs and rewards are others.
Today when CTC is calculated, due to the act limitation this component is included here and total pay announced.
hrg-rajaram
From United States
Hi All, Another query - Our Company has very high Basic almost 60% of the Gross. Do we need to give the yearly bonus. please enlighten. Regds Radha
Dear Kanaga :
In addition to Mr Manu's comments, I wd like to indicate that the bonus is paid on the wages earned.
When there is a LWOP or absence, where is the question of salary paid.
If no salary is paid, bonus is not payable.
Hope this is clear.
Rgds
From India, Hyderabad
In addition to Mr Manu's comments, I wd like to indicate that the bonus is paid on the wages earned.
When there is a LWOP or absence, where is the question of salary paid.
If no salary is paid, bonus is not payable.
Hope this is clear.
Rgds
From India, Hyderabad
Dear Kanaga :
In addition to Mr Manu's comments, I wd like to indicate that the bonus is paid on the wages earned.
When there is a LWOP or absence, where is the question of salary paid.
For no salary paid, no bonus is payable.
Hope this is clear.
Rgds
:: Dhinakaran
From India, Hyderabad
In addition to Mr Manu's comments, I wd like to indicate that the bonus is paid on the wages earned.
When there is a LWOP or absence, where is the question of salary paid.
For no salary paid, no bonus is payable.
Hope this is clear.
Rgds
:: Dhinakaran
From India, Hyderabad
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