Can you tell if some one having 20000/- basic per month how much amount applicable for bonus calculation 10000/- or 20000/- for ex. 20000/- X 12 = 240000/- 240000/- x 8.33% = 19992/-
From India, Thana
Acknowledge(0)
Amend(0)
2From India, Thana
Acknowledge(0)Amend(0)
Dear Sir/Madam,
According to my knowledge, the maximum limit of bonus is 5000/- and the salary limit is 15000/-. For salaries above 15000/-, we can decide whether to give the bonus, which is desirable.
Please confirm if my understanding is correct.
Regards,
Vikas Chopra
From India, Delhi
Acknowledge(0)Amend(0)
According to my knowledge, the maximum limit of bonus is 5000/- and the salary limit is 15000/-. For salaries above 15000/-, we can decide whether to give the bonus, which is desirable.
Please confirm if my understanding is correct.
Regards,
Vikas Chopra
From India, Delhi
Acknowledge(0)Amend(0)
Whether your question is regarding a bonus or in lieu of a bonus? For a salary above Rs. 10,000, there is no statutory claim for a bonus. Regarding ex-gratia/in lieu of a bonus, it is as per your organizational policies.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
Bonus is payable as per statutory terms limited to Rs. 3500/- of Basic Salary, i.e., @20% = Rs. 8400/- (Maximum).
More than that, there is no statutory claim for a bonus. But you can pay ex gratia/in lieu of a bonus; it is as per your organizational policy.
Mohan
From India, Hyderabad
Acknowledge(0)Amend(0)
More than that, there is no statutory claim for a bonus. But you can pay ex gratia/in lieu of a bonus; it is as per your organizational policy.
Mohan
From India, Hyderabad
Acknowledge(0)Amend(0)
Dear Vikas Chopra,
At the time of my above posting, I did not see your response. The salary ceiling limit for bonus coverage is still Rs. 10,000 and for the calculation of bonus payment is Rs. 3,500. Even though there is a proposal for enhancement, it hasn't been enacted yet.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
At the time of my above posting, I did not see your response. The salary ceiling limit for bonus coverage is still Rs. 10,000 and for the calculation of bonus payment is Rs. 3,500. Even though there is a proposal for enhancement, it hasn't been enacted yet.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
Dear,
Requesting you to search articles on citehr before posting your queries. There have been numerous discussions based on the payment of Bonus.
1. Bonus is calculated on Basic+DA.
2. The maximum eligible amount for Bonus is Rs. 3500 per month.
3. Employees earning more than Rs. 10K (Basic+DA) monthly are not covered under the Bonus Act. Companies can still go ahead and pay them a bonus; it's their personal choice, not a mandate.
4. If one earns Rs. 2800 as Basic+DA, then the Bonus will be Rs. 2800 per month.
Regards,
Rahul Chhabra
From India, Delhi
Acknowledge(0)Amend(0)
Requesting you to search articles on citehr before posting your queries. There have been numerous discussions based on the payment of Bonus.
1. Bonus is calculated on Basic+DA.
2. The maximum eligible amount for Bonus is Rs. 3500 per month.
3. Employees earning more than Rs. 10K (Basic+DA) monthly are not covered under the Bonus Act. Companies can still go ahead and pay them a bonus; it's their personal choice, not a mandate.
4. If one earns Rs. 2800 as Basic+DA, then the Bonus will be Rs. 2800 per month.
Regards,
Rahul Chhabra
From India, Delhi
Acknowledge(0)Amend(0)
Dear All What all are the eligibility criteria for bonus calculation. Kindly give brief detail in No of present day, whether leaves will includ or not, like ML,diablility. Thanks Aparna
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
According to my knowlege the bones calculation on 3500 which is according to law. minimum % 8.33 of 3500. but it is not a upperlimit for bonus it is the minimum % . but for maximum there is no limit.
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Dear Ankur Yadav,
In my opinion, the eligibility criteria for bonus calculation should be based on the number of present days in a year according to an individual's pay schedule. If an employee is on leave but receives full salary with adjustments for their leaves, we should increase their pay days considering the leave adjustments. Therefore, bonuses should be paid out even for leaves taken.
Thank you.
Sincerely,
[Your Name]
From India, Delhi
Acknowledge(0)Amend(0)
In my opinion, the eligibility criteria for bonus calculation should be based on the number of present days in a year according to an individual's pay schedule. If an employee is on leave but receives full salary with adjustments for their leaves, we should increase their pay days considering the leave adjustments. Therefore, bonuses should be paid out even for leaves taken.
Thank you.
Sincerely,
[Your Name]
From India, Delhi
Acknowledge(0)Amend(0)
for for ex. 20000/- X 12 = 240000/-, no Bonus is payable under the payment of Bonus Act 1965.
From India, Chandigarh
Acknowledge(0)Amend(0)
From India, Chandigarh
Acknowledge(0)Amend(0)
The individuals drawing wages (Basic+DA) upto Rs 10,000/- are only elegible for Bonus. In this case as teh Wages is more than Rs 10,000/-, bonus is not applicable.
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
I think the question on bonus was about the calculation method and not about what is allowed as per the Indian system. There are countries where such limits are not imposed by the government. Also, I doubt big companies in India are applying such limits on bonuses.
If you give a one-month bonus, it is 1/12, which means 8.333333%. So, if the basic salary is 20,000, then the calculations are 20,000 x 12 = 240,000 per annum. Bonus 240,000 x 8.33333% = 19,999, which can be rounded off to 20,000. The trick is to use all the decimals of 8.33%!!
Abhay Urankar
From India, Mumbai
Acknowledge(0)Amend(0)
If you give a one-month bonus, it is 1/12, which means 8.333333%. So, if the basic salary is 20,000, then the calculations are 20,000 x 12 = 240,000 per annum. Bonus 240,000 x 8.33333% = 19,999, which can be rounded off to 20,000. The trick is to use all the decimals of 8.33%!!
Abhay Urankar
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Vishal Could u please favour by forwarding the new notification on bonus wherein the minimum bonus has been increased to 11% from the existing 8.33% regards prakash
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
ELIGIBEL employees means, if Basic was less than Rs.10, 000/during April-2009 to March-2010.
From India, Valsad
Acknowledge(0)Amend(0)
From India, Valsad
Acknowledge(0)Amend(0)
Dear As per bonus act the calculation basic is 3500. and whose employee basic 10000 all are entitlement. the minimum bonus 8.33% and the maximum is 20%
From India, Ghaziabad
Acknowledge(0)Amend(0)
From India, Ghaziabad
Acknowledge(0)Amend(0)
Dear All,
There seems to be confusion regarding the amendments in the Payment of Bonus Act 1965. Many members have claimed that the amendment bill has been passed, and the new bonus will be 11% (bonus) + 9% (ex-gratia) of Basic+DA, rather than the previous 8.33% + 11.67%.
As per the information that I have, this bill was forwarded by Shri Oscar Fernandes and is still pending. Once it is approved, it will be called the Payment of Bonus Act, 2007.
If any of you have a copy of the passed bill, I request you to kindly share the same.
Regards,
Rahul Chhabra
From India, Delhi
Acknowledge(0)Amend(0)
There seems to be confusion regarding the amendments in the Payment of Bonus Act 1965. Many members have claimed that the amendment bill has been passed, and the new bonus will be 11% (bonus) + 9% (ex-gratia) of Basic+DA, rather than the previous 8.33% + 11.67%.
As per the information that I have, this bill was forwarded by Shri Oscar Fernandes and is still pending. Once it is approved, it will be called the Payment of Bonus Act, 2007.
If any of you have a copy of the passed bill, I request you to kindly share the same.
Regards,
Rahul Chhabra
From India, Delhi
Acknowledge(0)Amend(0)
Dear Sir/Madam,
My company provides 12 CL and 30 PL in a year. I took 12 CL and 14 PL till 31.03.2010 and worked an extra day on 16.5 days. My basic salary is Rs. 9000. Could you please suggest how much bonus I will receive for 2009-2010?
With regards,
Virender Singh Gusain
From India, New Delhi
Acknowledge(0)Amend(0)
My company provides 12 CL and 30 PL in a year. I took 12 CL and 14 PL till 31.03.2010 and worked an extra day on 16.5 days. My basic salary is Rs. 9000. Could you please suggest how much bonus I will receive for 2009-2010?
With regards,
Virender Singh Gusain
From India, New Delhi
Acknowledge(0)Amend(0)
Dear Virendra,
The bonus is calculated based on the payable days. If the leaves you took were utilized from your remaining leaves and were approved, then you are entitled to a bonus for those days. However, if you took leaves and your salary was deducted for those days, then you are not eligible for a bonus on those days.
Please search on citehr for bonus calculation details.
Regards,
Rahul Chhabra
From India, Delhi
Acknowledge(0)Amend(0)
The bonus is calculated based on the payable days. If the leaves you took were utilized from your remaining leaves and were approved, then you are entitled to a bonus for those days. However, if you took leaves and your salary was deducted for those days, then you are not eligible for a bonus on those days.
Please search on citehr for bonus calculation details.
Regards,
Rahul Chhabra
From India, Delhi
Acknowledge(0)Amend(0)
The bonus is payable to those whose basic salary is up to Rs. 10,000 per month. If somebody is getting Rs. 20,000 per month, then the company is not liable to pay a bonus to him. If management is willing to pay something, then they can pay it as an ex-gratia or any award/reward.
Ashok Gupta
From India, Kannur
Acknowledge(0)Amend(0)
Ashok Gupta
From India, Kannur
Acknowledge(0)Amend(0)
Dear Vikas Chopra,
You are absolutely correct. You provided the most suitable reply, but in accordance with the amended Act, which is yet to be enforced. According to the current rule, the maximum limit of the bonus is 3500/- and the salary limit is 10000 (basic + DA). For salaries above 10000/-, it is up to the company whether it pays a bonus or not.
From India, New Delhi
Acknowledge(0)Amend(0)
You are absolutely correct. You provided the most suitable reply, but in accordance with the amended Act, which is yet to be enforced. According to the current rule, the maximum limit of the bonus is 3500/- and the salary limit is 10000 (basic + DA). For salaries above 10000/-, it is up to the company whether it pays a bonus or not.
From India, New Delhi
Acknowledge(0)Amend(0)
Dear Friends,
Bonuses are variable as per the company rules, and this varies from company to company based on HR/management decisions. One more question: how many times does an employee receive a bonus from a company as per the rules?
From India, Mumbai
Acknowledge(0)Amend(0)
Bonuses are variable as per the company rules, and this varies from company to company based on HR/management decisions. One more question: how many times does an employee receive a bonus from a company as per the rules?
From India, Mumbai
Acknowledge(0)Amend(0)
Hi,
The mark-up value of the bonus is Rs. 3500/- per month BASIC, and the minimum percentage is 8.33%. That means the total limit of bonus calculation is 3500 x 12 = 42000. If an employee gets more than Rs. 42000/-, then the bonus amount is calculated on Rs. 42000/-. If an employee gets less than Rs. 42000/-, then the bonus amount is calculated on gross earnings in a financial year. However, a person who is working less than 30 days is not eligible for a bonus.
Reply to your example: Person received Rs. 3500 @ 8.33%.
Thanks & Regards,
Parimal Kishore
From India, Delhi
Acknowledge(0)Amend(0)
The mark-up value of the bonus is Rs. 3500/- per month BASIC, and the minimum percentage is 8.33%. That means the total limit of bonus calculation is 3500 x 12 = 42000. If an employee gets more than Rs. 42000/-, then the bonus amount is calculated on Rs. 42000/-. If an employee gets less than Rs. 42000/-, then the bonus amount is calculated on gross earnings in a financial year. However, a person who is working less than 30 days is not eligible for a bonus.
Reply to your example: Person received Rs. 3500 @ 8.33%.
Thanks & Regards,
Parimal Kishore
From India, Delhi
Acknowledge(0)Amend(0)
Dear Padma,
Under the Bonus Act, bonus payment is statutory for those drawing a salary up to Rs. 10,000. Accordingly, after arriving at the allocable surplus, there is no possibility of variation from company to company. To provide more payment than stipulated in the Bonus Act or for a salary exceeding Rs. 10,000, the employer may pay an amount called 'Ex-gratia.' This amount may vary from company to company.
As per the Act, there is only one bonus payment in one financial year. However, there is a maximum time span of 8 months to finalize bonus payment after the completion of the financial year, which is November 30. If an important festival falls before the finalization of the bonus, some employers may pay provisional bonus, and after finalization, the settlement will be completed.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
Under the Bonus Act, bonus payment is statutory for those drawing a salary up to Rs. 10,000. Accordingly, after arriving at the allocable surplus, there is no possibility of variation from company to company. To provide more payment than stipulated in the Bonus Act or for a salary exceeding Rs. 10,000, the employer may pay an amount called 'Ex-gratia.' This amount may vary from company to company.
As per the Act, there is only one bonus payment in one financial year. However, there is a maximum time span of 8 months to finalize bonus payment after the completion of the financial year, which is November 30. If an important festival falls before the finalization of the bonus, some employers may pay provisional bonus, and after finalization, the settlement will be completed.
Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Siva Sankar Tubati, In the above cited case, Rs. 10,000 will only be considered towards salary for bonus payment. Abbas.P.S
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Amendment to Payment of Bonus Act 2015.jpg
Bigger bonuses for more as Lok Sabha amends Payment of Bonus Act - The Economic Times.pdf
THE PAYMENT OF BONUS ACT.doc