Hi Friends,
Recently, my company has paid a statutory bonus. They said it is an arrear payment for the year 2015 to 2016 as the government made some changes to the bonus act back then. So, I would like to understand how this statutory bonus payment is calculated. Would I be eligible for this payment again? Is this calculated based on Basic salary, CTC, or Take-Home Salary? Please advise.
From India, Bangalore
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Recently, my company has paid a statutory bonus. They said it is an arrear payment for the year 2015 to 2016 as the government made some changes to the bonus act back then. So, I would like to understand how this statutory bonus payment is calculated. Would I be eligible for this payment again? Is this calculated based on Basic salary, CTC, or Take-Home Salary? Please advise.
From India, Bangalore
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Understanding Statutory Bonus Calculation in India
In India, the payment of statutory bonus is governed by the Payment of Bonus Act, 1965. When it comes to calculating the statutory bonus, it is based on the terms and conditions outlined in the Act. Here's a breakdown of how the statutory bonus is typically calculated:
1. [Icon indicating Step 1] Eligibility Criteria: To be eligible for a statutory bonus, an employee must have worked for a minimum number of days in the financial year for which the bonus is being calculated. The threshold varies as per the provisions of the Act.
2. [Icon indicating Step 2] Calculation Basis: The statutory bonus is usually calculated on the employee's Basic salary and dearness allowance. It is important to note that the bonus is not calculated on the CTC (Cost to Company) or the Take Home Salary.
3. [Icon indicating Step 3] Bonus Percentage: The Act stipulates a minimum and maximum bonus percentage that an employer must pay, which is typically a percentage of the allocable surplus.
4. [Icon indicating Step 4] Arrear Payments: In cases where arrear payments are made, they are usually adjustments for past periods where the bonus amount due was not paid or underpaid. This ensures that employees receive the full entitlement as per the Act.
5. [Icon indicating Step 5] Receiving Future Payments: Whether you will be eligible for the statutory bonus payment again would depend on your continued employment with the company and meeting the eligibility criteria as per the Act for the relevant financial year.
It is advisable to refer to the specific provisions of the Payment of Bonus Act, 1965, and consult with your HR or legal department for detailed information on the calculation of the statutory bonus in your case.
From India, Gurugram
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54In India, the payment of statutory bonus is governed by the Payment of Bonus Act, 1965. When it comes to calculating the statutory bonus, it is based on the terms and conditions outlined in the Act. Here's a breakdown of how the statutory bonus is typically calculated:
1. [Icon indicating Step 1] Eligibility Criteria: To be eligible for a statutory bonus, an employee must have worked for a minimum number of days in the financial year for which the bonus is being calculated. The threshold varies as per the provisions of the Act.
2. [Icon indicating Step 2] Calculation Basis: The statutory bonus is usually calculated on the employee's Basic salary and dearness allowance. It is important to note that the bonus is not calculated on the CTC (Cost to Company) or the Take Home Salary.
3. [Icon indicating Step 3] Bonus Percentage: The Act stipulates a minimum and maximum bonus percentage that an employer must pay, which is typically a percentage of the allocable surplus.
4. [Icon indicating Step 4] Arrear Payments: In cases where arrear payments are made, they are usually adjustments for past periods where the bonus amount due was not paid or underpaid. This ensures that employees receive the full entitlement as per the Act.
5. [Icon indicating Step 5] Receiving Future Payments: Whether you will be eligible for the statutory bonus payment again would depend on your continued employment with the company and meeting the eligibility criteria as per the Act for the relevant financial year.
It is advisable to refer to the specific provisions of the Payment of Bonus Act, 1965, and consult with your HR or legal department for detailed information on the calculation of the statutory bonus in your case.
From India, Gurugram
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