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 the bonus and if one exceeds the limit, how do we show the same in the registers. Please provide me with detailed formats through which the same can be maintained. I also want to know if the company is liable to pay a bonus in case an employee exceeds the ceiling/limit.
From India, Bangalore
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3I have a question on the limit/ceiling of Bonus payable as per the act. I want to know the limit/ceiling of the bonus and if one exceeds the limit, how do we show the same in the registers. Please provide me with detailed formats through which the same can be maintained. I also want to know if the company is liable to pay a bonus in case an employee exceeds the ceiling/limit.
From India, Bangalore
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Dear SKM,
Bonus is calculated on the basic salary. The minimum percentage to be given as a bonus would be 8.33%, and the maximum percentage would be 20%. Anything given above 20% is called an ex-gratia payment.
Your second query is the limit of the bonus?
The limit for calculating the bonus is Rs. 10,000/- on the basic salary. Anyone drawing a basic salary that is more than Rs. 10,000/- is ineligible for a bonus as per the act. There are two types of bonuses: one is statutory bonus, and the other is a customary bonus. You have to show only the statutory bonus paid in the register maintained in Form C and D as per the bonus act. The company is not liable to pay a bonus if anyone crosses the limit.
From India, Madras
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Bonus is calculated on the basic salary. The minimum percentage to be given as a bonus would be 8.33%, and the maximum percentage would be 20%. Anything given above 20% is called an ex-gratia payment.
Your second query is the limit of the bonus?
The limit for calculating the bonus is Rs. 10,000/- on the basic salary. Anyone drawing a basic salary that is more than Rs. 10,000/- is ineligible for a bonus as per the act. There are two types of bonuses: one is statutory bonus, and the other is a customary bonus. You have to show only the statutory bonus paid in the register maintained in Form C and D as per the bonus act. The company is not liable to pay a bonus if anyone crosses the limit.
From India, Madras
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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
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From India, Patiala
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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
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From India, Pune
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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
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From India, Gurgaon
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Dear HR team,
I have a situational query. Mr. X joined ABC Co. with an annual CTC of Rs 292,500 (Rs 22,500 per month and a yearly bonus of Rs 22,500). However, he resigned before completing one year. My question is: Is he still eligible for the bonus?
Regards,
Freddy.
From India, Mumbai
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I have a situational query. Mr. X joined ABC Co. with an annual CTC of Rs 292,500 (Rs 22,500 per month and a yearly bonus of Rs 22,500). However, he resigned before completing one year. My question is: Is he still eligible for the bonus?
Regards,
Freddy.
From India, Mumbai
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Freddy,
If the basic+DA per month is less than Rs. 10,000/-, then only statutory bonus is payable. Please confirm this aspect so that I can provide you with further advice.
As far as the working duration is concerned, the statutory bonus is payable to an employee if they have worked for a minimum of 30 days in a financial year for which the 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. This means that if an employee has worked for 4 months in a financial year and resigns in the 5th month, they are entitled to the statutory bonus as they have worked for 30 days, but they will only receive the bonus for the 4 months worked and not for the entire period.
Please let me know if you need further clarification or assistance.
Thank you.
From India, Mumbai
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If the basic+DA per month is less than Rs. 10,000/-, then only statutory bonus is payable. Please confirm this aspect so that I can provide you with further advice.
As far as the working duration is concerned, the statutory bonus is payable to an employee if they have worked for a minimum of 30 days in a financial year for which the 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. This means that if an employee has worked for 4 months in a financial year and resigns in the 5th month, they are entitled to the statutory bonus as they have worked for 30 days, but they will only receive the bonus for the 4 months worked and not for the entire period.
Please let me know if you need further clarification or assistance.
Thank you.
From India, Mumbai
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(Fact Checked)-The information provided in the user reply is accurate based on the Payment of Bonus Act, 1965. The criteria for statutory bonus eligibility and calculation are correctly outlined. (1 Acknowledge point)
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Hi Manish,
The employee is in the executive (Assistant Manager) category, and the bonus indicated in his appointment letter was part of CTC (not a statutory bonus). However, no performance or profit-based conditions are mentioned in his appointment letter. In this case, if the company is not paying the bonus at the time of Full & Final settlement, can he go the judicial way?
Please advise.
Regards,
Freddy
From India, Mumbai
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The employee is in the executive (Assistant Manager) category, and the bonus indicated in his appointment letter was part of CTC (not a statutory bonus). However, no performance or profit-based conditions are mentioned in his appointment letter. In this case, if the company is not paying the bonus at the time of Full & Final settlement, can he go the judicial way?
Please advise.
Regards,
Freddy
From India, Mumbai
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(Fact Checked)-The bonus mentioned in the appointment letter being part of CTC without any performance/profit-based condition does not necessarily make it non-statutory. If entitled, legal recourse can be pursued. (1 Acknowledge point)
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Dear Sir/Madam,
I am confused about whether the word "Salary" or "Wages" in the Bonus Act is inclusive of Basic + D.A. or Basic + other allowances. Please clarify what is deemed correct according to the act. The Bonus limit is based on Salary or wages up to 10,000, but is it Basic + D.A. or the gross salary? Additionally, our company does not pay D.A. Our salary structure comprises Gross = Basic + HRA + Medical Allowance + Transportation Allowance + Education Allowance. Kindly confirm if all of these components fall under the definition of Salary or Wages in the Bonus Act.
Thank you.
From India, Nagpur
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I am confused about whether the word "Salary" or "Wages" in the Bonus Act is inclusive of Basic + D.A. or Basic + other allowances. Please clarify what is deemed correct according to the act. The Bonus limit is based on Salary or wages up to 10,000, but is it Basic + D.A. or the gross salary? Additionally, our company does not pay D.A. Our salary structure comprises Gross = Basic + HRA + Medical Allowance + Transportation Allowance + Education Allowance. Kindly confirm if all of these components fall under the definition of Salary or Wages in the Bonus Act.
Thank you.
From India, Nagpur
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Hi, yes first ur basic salary (basic+da) must be upto 10000 not more then to get bonus secondly you must have done continuously 30 days job in accounting year Thanks & regards,
From India, Ambala
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From India, Ambala
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[QUOTE=Heena_Bhola;1691367]
Hi,
Yes, first, your basic salary (basic + DA) must be up to 10000, not more than that to get a bonus. Secondly, you must have worked continuously for 30 days in the accounting year.
Thanks & regards,
Thank you so much for your help. I need one more favor, could you please email me the amendment where it is mentioned that bonus eligibility depends on basic + D.A.? My email address is: chourasiarucha@gmail.com
Thanks & Regards.
From India, Nagpur
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Hi,
Yes, first, your basic salary (basic + DA) must be up to 10000, not more than that to get a bonus. Secondly, you must have worked continuously for 30 days in the accounting year.
Thanks & regards,
Thank you so much for your help. I need one more favor, could you please email me the amendment where it is mentioned that bonus eligibility depends on basic + D.A.? My email address is: chourasiarucha@gmail.com
Thanks & Regards.
From India, Nagpur
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Sir, I am working in NPCIL through a contractor. My work is regular type, and I have been working since 1994. According to the law, how many types of facilities can we get from NPCIL? Presently, we only receive PF and Bonus. Are we eligible for any leave or medical facilities? If I take a day off, the contractor deducts an amount for that day. Our contract is a one-year labor supply contract.
From India, Mumbai
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From India, Mumbai
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if someone getting salary of Rs. 11000 pm. whether he is eligible or not for bonus
From India, Pune
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From India, Pune
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(Fact Checked)-The eligibility for bonus is based on the Payment of Bonus Act, 1965. As per the Act, an employee earning a salary of up to Rs. 21,000 per month is eligible for bonus. This means an employee with a salary of Rs. 11,000 per month would be eligible for bonus. (1 Acknowledge point)
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i want brief informtion on bonus calculation. e.g eligibility, limit, calculation, examples
From India, Pune
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From India, Pune
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If PFable salary is more than 10,000 & but basic amount is less than 10,000/-. what will be the calculation. whether the employee is eligible for bonus or not ?
From India, Vadodara
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From India, Vadodara
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Dear minimum days/ month for bonus for statury bonus and clear formula calculate in months or days basic salary + da (not more than 10,000/-) * number of days / month*8.33 Guleriya
From India, Ghaziabad
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From India, Ghaziabad
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dear all, please share the esic calculation,pf calculation and bonus calculation with act. Thanks and Regards Rajesh Paswan
From India
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From India
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Dear hr community please find bonus form d in excel format
From India, Morena
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From India, Morena
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Dear Sir,
HR COM
I'm going to prepare the full and final sheet for employees with bonus amount. Please kindly suggest to me the bonus calculation process.
For example, if they worked and attended for 4 months, the number of days is 52, and the basic salary is calculated as follows:
- Basic 6500/25=240*52 days*8.33%
OR
- Basic 6500/30=217*52 days*8.33%
So, we divide by 30 days or 25 days in a month for the basic salary.
Suresh
From India, Birmal
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HR COM
I'm going to prepare the full and final sheet for employees with bonus amount. Please kindly suggest to me the bonus calculation process.
For example, if they worked and attended for 4 months, the number of days is 52, and the basic salary is calculated as follows:
- Basic 6500/25=240*52 days*8.33%
OR
- Basic 6500/30=217*52 days*8.33%
So, we divide by 30 days or 25 days in a month for the basic salary.
Suresh
From India, Birmal
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Dear sir/Madam, Can you please provide the policy about new startup companies will applicable for bonus act or not?
From India, Bangalore
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From India, Bangalore
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Dear All,
I would like to know more about employee benefits. Is it mandatory to provide a bonus as per the act? Are there any rules and regulations for providing bonuses? Is it applicable if a company processes a resolution to withhold bonuses for irregular employees? If processed, can we apply the resolution to existing employees within the organization? I would appreciate a valuable reply.
Kind regards, [Your Name]
From India, Tirunelveli
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I would like to know more about employee benefits. Is it mandatory to provide a bonus as per the act? Are there any rules and regulations for providing bonuses? Is it applicable if a company processes a resolution to withhold bonuses for irregular employees? If processed, can we apply the resolution to existing employees within the organization? I would appreciate a valuable reply.
Kind regards, [Your Name]
From India, Tirunelveli
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf
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(Fact Checked)-The employee is entitled to a proportionate bonus for the period worked as per the Payment of Bonus Act, regardless of resignation. Ensure compliance with the Act. (1 Acknowledge point)