Can someone tell me if there is any ruling on the amount of Diwali/festival bonus? Does it differ from organisation to organisation?
From India, Gurgaon
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From India, Gurgaon
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Hi, If you can go through the bonus act it will give you more clear idea. Regards, Hrushikesh
From India, Mumbai
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7From India, Mumbai
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Please go thru the Payment of Bonus Act for details. No difference in bonus for the organisations irrespective of its size. However, they are free to fix the ex-gratia as per their wish.
From India, Lucknow
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From India, Lucknow
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Thanks guys! We were always given 1 1/2 months salary as bonus which is also part of our CTC. On Diwali, we were informed that the bonus will not be that much but a meagre amount.
From India, Gurgaon
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From India, Gurgaon
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In my view, the act does not mention Diwali or festival bonuses. It only states that if some festival bonus is paid, then that amount is allowed to be adjusted against the bonus payable as per the Payment of Bonus Act. Bonus is only payable if the salary is less than Rs 2500 per month. Perhaps this amount was recently increased to Rs 3500 per month—I am not entirely sure.
In other words, organizations do not have a legal obligation to pay bonuses to highly-paid employees. If they do pay, it is considered an ex gratia payment and not a bonus under the Payment of Bonus Act.
From India, Madras
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In other words, organizations do not have a legal obligation to pay bonuses to highly-paid employees. If they do pay, it is considered an ex gratia payment and not a bonus under the Payment of Bonus Act.
From India, Madras
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An employee is entitled to a bonus if his basic is <=10000/-. The bonus will be calculated based on Rs. 3500/- (Minimum 8.33% to 20% - depending on company profit - Allowable surplus). If the company is in a loss, it may be exempted for the first 5 years. After that, it is compulsory to pay.
Thanks & Regards,
Ranjeet
From India, New Delhi
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Thanks & Regards,
Ranjeet
From India, New Delhi
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It differs from company to company but the minimum % you will must get if the company is not in lost.
From India, Delhi
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From India, Delhi
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No rule on payment of BONUS on the "DIWALI" occasion. Payment of Bonus should be on the following two conditions:
1) Employee salary/wages should not be greater than Rs. 10,000/-
2) The minimum bonus of 8.33% of wages should be paid within 8 months from the closing of the accounting year.
From India, Tiruchchirappalli
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1) Employee salary/wages should not be greater than Rs. 10,000/-
2) The minimum bonus of 8.33% of wages should be paid within 8 months from the closing of the accounting year.
From India, Tiruchchirappalli
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Yes, if you have already paid customary bonuses to your employees, you can deduct that amount of customary bonus from your annual bonus and make the range of the bonus between 8.33% - 20% of annual earnings, not on wages.
From India, Mumbai
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From India, Mumbai
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Hi,
Bonuses are paid annually within 8 months from the close of the accounting year of the company. A minimum of 8.33% and a maximum of 20% of the basic salary can be given to employees if they have worked for at least 30 days. It is calculated based on the number of working days each month. The ceiling for the bonus is Rs. 3,500.
Regards,
Aditi
From India, Dehra Dun
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Bonuses are paid annually within 8 months from the close of the accounting year of the company. A minimum of 8.33% and a maximum of 20% of the basic salary can be given to employees if they have worked for at least 30 days. It is calculated based on the number of working days each month. The ceiling for the bonus is Rs. 3,500.
Regards,
Aditi
From India, Dehra Dun
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Bonus calculation depend on different organisation policy. = basic salary*8.33%*no. of month
From India, Mumbai
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From India, Mumbai
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There is no criteria as Diwali Bonus, Bonus can be given for any occasion but once in a year, depending organization to organization. As said it can range between 8.33% to 20% Sarfaraz
From India, Bangalore
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From India, Bangalore
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Make bonus calculations in basic from 3500/- to 10000/-. Bonus will be calculated; a sample file is attached herewith (Min. 8.33% to 20% - depends on company profit - Allowable surplus).
Highly paid bonus to employees is an ex-gratia and not a bonus under the Payment of Bonus Act.
Gopalakrishnan
From India, Gurgaon
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Highly paid bonus to employees is an ex-gratia and not a bonus under the Payment of Bonus Act.
Gopalakrishnan
From India, Gurgaon
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THE PAYMENT OF BONUS ACT.doc