Dear Seniors, I am very new to HR and have a doubt regarding the eligibility for the Payment of Bonus. As per the Payment of Bonus Act 1965, if an employee has worked in an organization for thirty days in an accounting year, he/she will be eligible for the payment of a bonus. In this connection, if an employee joined in April and resigned in June, he/she would be eligible. Therefore, we would need to pay the bonus to that particular employee. Am I right? If I am wrong, please correct me by providing your valuable comments. Thanks in advance for your great help.
From India, Chennai
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From India, Chennai
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Dear, As per the Payment of Bonus Act 1965, after 30 days from his date of joining employee will be eligible for the bonus . Regards Atul
From India, Delhi
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19From India, Delhi
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Bonus becomes payable only after its determination at the close of the relevant accounting year. Therefore, if an employee leaves the establishment in the middle of the accounting year, it is not necessary that proportionate bonus has to be paid along with Full and Final Settlement.
From India, Salem
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From India, Salem
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Hi,
You are right. The guidelines of the Payment of Bonus Act are as follows:
1) Eligibility: The employee should have worked for 30 days in a year.
2) Applicability: From the 6th accounting year of the company from the date of commencement OR From the 1st Profit Making Year of the Company.
3) Payable: when BASIC + DA < or = Rs. 10,000
If all the above are met, then you have to bonus even if the employee has worked only 32 days.
Regards, Priya
From India, Mumbai
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You are right. The guidelines of the Payment of Bonus Act are as follows:
1) Eligibility: The employee should have worked for 30 days in a year.
2) Applicability: From the 6th accounting year of the company from the date of commencement OR From the 1st Profit Making Year of the Company.
3) Payable: when BASIC + DA < or = Rs. 10,000
If all the above are met, then you have to bonus even if the employee has worked only 32 days.
Regards, Priya
From India, Mumbai
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Amendment to Payment of Bonus Act 2015.jpg
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THE PAYMENT OF BONUS ACT.doc