Hi What is statutary Bonus.How it will be calculated. Regards Sivakumari
From India, Bangalore
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From India, Bangalore
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dear bonus paid as per payment of bonus act 1965 is is statutory bonus and it is calculted as per provisions of this act. j s malik
From India, Delhi
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174From India, Delhi
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Statutory Bonus = 8.33% Of Average Wages (Basic+ DA)*Present Days/ Working Days in a year Prashant
From India, Pune
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From India, Pune
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Hi Shiva,
In India, the practice of paying bonuses appears to have originated during the First World War when certain textile mills granted 10% of wages as a war bonus to their workers in 1917. A Tripartite Commission was set up by the Government of India to consider, in a comprehensive manner, the question of payment of bonuses based on profits to employees employed in establishments and to make recommendations to the Government. The Government of India accepted the recommendations of the Commission subject to certain modifications. To implement these recommendations, the Payment of Bonus Ordinance, 1965, was promulgated on 29th May 1965. To replace the said Ordinance, the Payment of Bonus Bill was introduced in the Parliament.
Statutory Bonus means a legal Bonus or Constitutional Bonus or Legally Authorized Bonus.
The Payment of Bonus Act is entitled as follows:
An Act to provide for the payment of bonuses to persons employed in certain establishments based on profits or on the basis of production or productivity and for matters connected therewith.
Eligibility for bonus:
Every employee shall be entitled to be paid by his employer in an accounting year a bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
Disqualification for a bonus:
(a) fraud; or (b) riotous or violent behavior while on the premises of the establishment; or (c) theft, misappropriation, or sabotage of any property of the establishment.
Payment of a minimum bonus: The minimum bonus paid by the employer shall be 8.33% of (Basic Wage + Dearness Allowance) * Number of Days Present in a Year / Number of working days in a year.
Payment of the Maximum Bonus: The maximum Bonus paid by the employer shall be a maximum of 20% and it varies.
Time-limit for payment of bonus: within a period of eight months from the close of the accounting year.
From India, Madras
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In India, the practice of paying bonuses appears to have originated during the First World War when certain textile mills granted 10% of wages as a war bonus to their workers in 1917. A Tripartite Commission was set up by the Government of India to consider, in a comprehensive manner, the question of payment of bonuses based on profits to employees employed in establishments and to make recommendations to the Government. The Government of India accepted the recommendations of the Commission subject to certain modifications. To implement these recommendations, the Payment of Bonus Ordinance, 1965, was promulgated on 29th May 1965. To replace the said Ordinance, the Payment of Bonus Bill was introduced in the Parliament.
Statutory Bonus means a legal Bonus or Constitutional Bonus or Legally Authorized Bonus.
The Payment of Bonus Act is entitled as follows:
An Act to provide for the payment of bonuses to persons employed in certain establishments based on profits or on the basis of production or productivity and for matters connected therewith.
Eligibility for bonus:
Every employee shall be entitled to be paid by his employer in an accounting year a bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
Disqualification for a bonus:
(a) fraud; or (b) riotous or violent behavior while on the premises of the establishment; or (c) theft, misappropriation, or sabotage of any property of the establishment.
Payment of a minimum bonus: The minimum bonus paid by the employer shall be 8.33% of (Basic Wage + Dearness Allowance) * Number of Days Present in a Year / Number of working days in a year.
Payment of the Maximum Bonus: The maximum Bonus paid by the employer shall be a maximum of 20% and it varies.
Time-limit for payment of bonus: within a period of eight months from the close of the accounting year.
From India, Madras
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Dear,
Statutory bonus means it is applicable to:
1) every factory and
2) other establishment employing 20 or more persons, and
3) if a factory/organization incurs losses for the first five years, then there is no need to pay it. Otherwise, it must be paid if the organization is profitable. However,
4) it is mandatory to pay the bonus from the sixth year of the establishment of the factory/organization (whether profit or losses have been continuous).
5) A person should work in an organization for a minimum of 30 days in a year.
6) Salary ranges are determined according to the Bonus Act.
All the above scenarios are referred to as statutory bonuses as per the Bonus Act of 1965. I believe you have now received the answer regarding the calculation from the above messages:
The bonus amount is a minimum of 8.33% of your earnings wages (basic + DA) and can go up to a maximum of 20% of your earnings wages (basic + DA). Please always consider the earning wages and the number of days present/number of days worked in a year when conducting calculations.
Best Regards,
Sajid
From India, Delhi
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Statutory bonus means it is applicable to:
1) every factory and
2) other establishment employing 20 or more persons, and
3) if a factory/organization incurs losses for the first five years, then there is no need to pay it. Otherwise, it must be paid if the organization is profitable. However,
4) it is mandatory to pay the bonus from the sixth year of the establishment of the factory/organization (whether profit or losses have been continuous).
5) A person should work in an organization for a minimum of 30 days in a year.
6) Salary ranges are determined according to the Bonus Act.
All the above scenarios are referred to as statutory bonuses as per the Bonus Act of 1965. I believe you have now received the answer regarding the calculation from the above messages:
The bonus amount is a minimum of 8.33% of your earnings wages (basic + DA) and can go up to a maximum of 20% of your earnings wages (basic + DA). Please always consider the earning wages and the number of days present/number of days worked in a year when conducting calculations.
Best Regards,
Sajid
From India, Delhi
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Dear HR Siva,
Let me clarify that the statutory bonus is payable to those employees drawing a salary of a maximum of Rs. 10,000 per month. As the ceiling for bonus calculation stands at Rs. 3,500, for individuals with salaries ranging between Rs. 3,500 and Rs. 10,000, the salary considered for bonus computation will be fixed at Rs. 3,500.
Conversely, for those employees whose salary is below Rs. 3,500, the bonus will be calculated based on their actual salary.
Regards,
N R M
From India, Bangalore
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Let me clarify that the statutory bonus is payable to those employees drawing a salary of a maximum of Rs. 10,000 per month. As the ceiling for bonus calculation stands at Rs. 3,500, for individuals with salaries ranging between Rs. 3,500 and Rs. 10,000, the salary considered for bonus computation will be fixed at Rs. 3,500.
Conversely, for those employees whose salary is below Rs. 3,500, the bonus will be calculated based on their actual salary.
Regards,
N R M
From India, Bangalore
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Dear,
:icon1:
Amendment to the Payment of Bonus Act, 1965 are as follows:
- Amendment to Section 2(13): to raise the eligibility limit for payment of bonus from the salary or wage of Rs. 3500/- to Rs. 10,000 per month.
- Amendment to Section 12: To raise the ceiling for calculation purposes from the salary or wages of Rs. 2500/- to Rs. 3500/- per month.
- Deletion of Section 32(vi): To cover the employees employed through contractors on building operations.
Regards,
Bhupendra Singh
M-09825062156
From United States, Lynchburg
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Amendment to the Payment of Bonus Act, 1965
:icon1:
Amendment to the Payment of Bonus Act, 1965 are as follows:
- Amendment to Section 2(13): to raise the eligibility limit for payment of bonus from the salary or wage of Rs. 3500/- to Rs. 10,000 per month.
- Amendment to Section 12: To raise the ceiling for calculation purposes from the salary or wages of Rs. 2500/- to Rs. 3500/- per month.
- Deletion of Section 32(vi): To cover the employees employed through contractors on building operations.
Regards,
Bhupendra Singh
M-09825062156
From United States, Lynchburg
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