Dear HR Fraternity, I have a question on the limit/ceiling of Bonus payable as per the act. I want to know the limit/ceiling of bonus and if one exceeds the limit how do we show the same in the registers.plz get me the detailed formats through which same can be maintained. I also want to know if the company is liable to pay bonus in case ann employee exceeds the ceiling/limit.
From India, Bangalore
3From India, Bangalore
Dear SKM,
Bonus is calculated on the basic salary. The minimum % to be given as bonus would be 8.33% and Maximum % would be 20%. Anything given above 20% is caled as exgratia payment.
Your second query is limit of bonus ?
The limit for calculating bonus is Rs.10000/- on basic . Any one drawing basic salary which is more than Rs. 10000/- is ineligible for bonus as per act. There are two types of bonus, one is statutory bonus and other is customary bonus. You have to show only statutory bonus paid in the register maintained in Form C and D as per bonus act.
The company is not liable to pay bonus if any one crosses the limit.
From India, Madras
Bonus is calculated on the basic salary. The minimum % to be given as bonus would be 8.33% and Maximum % would be 20%. Anything given above 20% is caled as exgratia payment.
Your second query is limit of bonus ?
The limit for calculating bonus is Rs.10000/- on basic . Any one drawing basic salary which is more than Rs. 10000/- is ineligible for bonus as per act. There are two types of bonus, one is statutory bonus and other is customary bonus. You have to show only statutory bonus paid in the register maintained in Form C and D as per bonus act.
The company is not liable to pay bonus if any one crosses the limit.
From India, Madras
Dear All, Kindly clear me if the bonus is paid above 20% on basic salary . for Example if bonus paid is 25% the 5% would be exgratia. Regards, Suman
From India, Patiala
From India, Patiala
Dear All, If someone is on maternity leave that time she is eligible for bonus so how to calculate ? what basic & spl to be consider ? — — — — - MANOJ PATIL 98222 72 152
From India, Pune
From India, Pune
But anyone who draws basic salary more than 10000/- is not eligible for bonus.but if company wishes then can give it or not??????
From India, Gurgaon
From India, Gurgaon
Dear HR com,
I have situational query?
Mr. X joined in ABC Co. on on annual CTC of Rs 292500/- (Rs 22500/- per month and Rs 22500/- as yearly bonus). He resigns before completion of 1 year. Is he eligible for the bonus?
- regards
Freddy.
From India, Mumbai
I have situational query?
Mr. X joined in ABC Co. on on annual CTC of Rs 292500/- (Rs 22500/- per month and Rs 22500/- as yearly bonus). He resigns before completion of 1 year. Is he eligible for the bonus?
- regards
Freddy.
From India, Mumbai
Freddy
If the basic+DA per month is less than Rs. 10000/- then only statutory bonus is payable. Please confirm on this aspect so that I can give you further advice. As far as working duration is concerned, the statutory bonus is payable to employee if he has worked for minimum 30 days in a financial year of which bonus is to be paid. Please note that the bonus is always paid based on the number of days of service the employee has actually rendered. It means if an employee has worked for 4 months in a financial year and he resigned in 5th month, he is entitled for the statutory bonus as he has worked for 30 days but he will get the bonus only for 4 months and not for entire period.
From India, Mumbai
If the basic+DA per month is less than Rs. 10000/- then only statutory bonus is payable. Please confirm on this aspect so that I can give you further advice. As far as working duration is concerned, the statutory bonus is payable to employee if he has worked for minimum 30 days in a financial year of which bonus is to be paid. Please note that the bonus is always paid based on the number of days of service the employee has actually rendered. It means if an employee has worked for 4 months in a financial year and he resigned in 5th month, he is entitled for the statutory bonus as he has worked for 30 days but he will get the bonus only for 4 months and not for entire period.
From India, Mumbai
Hi Manish...
The employee is in executive (assistant Mgr) category and the the bonus indicated in his appointment letter was part of CTC (not a statutory bonus). However, no performance/profit based condition is bear with his appointment letter. In this case if the company is not paying the bonus at the time of Full & Final settlement, can he take go with judicial way ?
please advise.
regards
Freddy,
From India, Mumbai
The employee is in executive (assistant Mgr) category and the the bonus indicated in his appointment letter was part of CTC (not a statutory bonus). However, no performance/profit based condition is bear with his appointment letter. In this case if the company is not paying the bonus at the time of Full & Final settlement, can he take go with judicial way ?
please advise.
regards
Freddy,
From India, Mumbai
Sir/Mam,
I am confused with the word Salary or Wages in the Bonus Act is inclusive of Basic + D.A. or Basic + other allowances. Please convey whatever according to act is correct.
Because Bonus limit is Salary or wages upto 10000 but is it Bsic + D.A or the gross salary.
Also our company does not pay D.A
Our salary structure is Gross = Basic + HRA + Medical All + Transportation All + Edu All.
Please Convey if all these come under the definition of Salary or Wages in Bonus Act.
From India, Nagpur
I am confused with the word Salary or Wages in the Bonus Act is inclusive of Basic + D.A. or Basic + other allowances. Please convey whatever according to act is correct.
Because Bonus limit is Salary or wages upto 10000 but is it Bsic + D.A or the gross salary.
Also our company does not pay D.A
Our salary structure is Gross = Basic + HRA + Medical All + Transportation All + Edu All.
Please Convey if all these come under the definition of Salary or Wages in Bonus Act.
From India, Nagpur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
BONUS CEILING LIMIT APPROVED.pdf
Amendment to Payment of Bonus Act 2015.jpg