I joined in an organisation just 6 months back. I have got 14 yrs experience. What bonus should I get?
From India, Madras
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From India, Madras
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Bonus should be caluculate by present employing period only.... In statutory wise bonus celing is 3,500 only...another point is basic should not be more than 10,000.
From India, Visakhapatnam
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From India, Visakhapatnam
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Please note, the company declares a bonus (in general) for the previous financial year 2010-11 (year ended 31st March 2011). The same is due to be paid as per the Bonus Act on or before 30th Nov 2011 (8 months period). To coincide with the Diwali festival, companies make it a point to disburse during the festival time.
I do not know the bonus procedure followed in your company. Some companies pay bonuses to those who are on the roll on the day of bonus disbursement. However, if your company follows the Bonus Act/rules, then you are not eligible for a bonus now (this time). Next year, you will be eligible. In advance, if you wish to ask, even if you are not continuing in this present organization, since you have put in more than 30 days of attendance in this financial year 2011-12, you are eligible for a bonus when announced next year by the company. You can write to them and ask for it; they will pay, or they have to pay.
Sundararaman
From India, Madras
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66I do not know the bonus procedure followed in your company. Some companies pay bonuses to those who are on the roll on the day of bonus disbursement. However, if your company follows the Bonus Act/rules, then you are not eligible for a bonus now (this time). Next year, you will be eligible. In advance, if you wish to ask, even if you are not continuing in this present organization, since you have put in more than 30 days of attendance in this financial year 2011-12, you are eligible for a bonus when announced next year by the company. You can write to them and ask for it; they will pay, or they have to pay.
Sundararaman
From India, Madras
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Dear Sir What is minimum salary for bonus pay ? How much bonus for Basic salary Rs 1000/- Please advice Regards Jagan 9892109647
From India, Mumbai
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From India, Mumbai
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I fully agree with Mr. Sundararaman. There are only two options - follow the Bonus Act or follow the company's management diktat. In case of the former, everything is laid down in writing - Financial Year for Bonus (April to March), who is eligible, min 8.33%, etc. Anybody above the minimum eligibility can get a bonus. If following the latter, it is the whim and fancies of the managements. Therefore, your getting bonus will depend on your company!
Rajusiachen
From India, Coimbatore
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Rajusiachen
From India, Coimbatore
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Dear Mr. Jagan,
If your Basic (+DA) is 1000/-, assuming you have completed one year of service, then it is 12000/- x 8.33% (minimum) = 1000/-.
If you have worked less than that period - calculate your basic x that many number of months in service x 8.33%.
The company can declare a bonus of up to 20% as well, then the calculation will be that way.
Please note, some companies are very good. They do not involve any calculation, and management decides on a specific amount. For those with the company for over a year, this much, less than a year, this much, less than x months = no bonus, etc.
As far as the bonus is concerned, it all depends on company policy.
The Bonus Act clearly states a 8.33% minimum bonus even for a loss-making company. Here again, I forgot to mention a very important point - if the company/organization is formed & running for less than 5 years, such companies/organizations need not pay a bonus as they are exempted for the first 5 years of incorporation.
Here again, some companies are extremely nice to declare "Ex gratia" (instead of a bonus) if they are doing well.
Regards,
Sundararaman
From India, Madras
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If your Basic (+DA) is 1000/-, assuming you have completed one year of service, then it is 12000/- x 8.33% (minimum) = 1000/-.
If you have worked less than that period - calculate your basic x that many number of months in service x 8.33%.
The company can declare a bonus of up to 20% as well, then the calculation will be that way.
Please note, some companies are very good. They do not involve any calculation, and management decides on a specific amount. For those with the company for over a year, this much, less than a year, this much, less than x months = no bonus, etc.
As far as the bonus is concerned, it all depends on company policy.
The Bonus Act clearly states a 8.33% minimum bonus even for a loss-making company. Here again, I forgot to mention a very important point - if the company/organization is formed & running for less than 5 years, such companies/organizations need not pay a bonus as they are exempted for the first 5 years of incorporation.
Here again, some companies are extremely nice to declare "Ex gratia" (instead of a bonus) if they are doing well.
Regards,
Sundararaman
From India, Madras
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Basic salary only 1000/-??? I think, even min wages of the respective states will be more than this bracket. Pon
From India, Lucknow
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From India, Lucknow
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Mr. Pon,
In some companies, they still have basic + DA around 20-25%. This is a different subject (minimum wages bifurcation) on which a lot of firefighting is going on with the courts by the PF authorities. Hence, as of now - assuming for calculation purposes, Jagan would have mentioned 1000 (because on getting clarification, he can work out with the exact basic + DA which he is getting to cross-check his calculation versus the company's calculation (again subject to Jagan's eligibility under the Bonus Act, Company's Policy, Company falling under the Payment of Bonus Act (having completed 5 years, etc.). Regards,
Sundararaman
From India, Madras
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In some companies, they still have basic + DA around 20-25%. This is a different subject (minimum wages bifurcation) on which a lot of firefighting is going on with the courts by the PF authorities. Hence, as of now - assuming for calculation purposes, Jagan would have mentioned 1000 (because on getting clarification, he can work out with the exact basic + DA which he is getting to cross-check his calculation versus the company's calculation (again subject to Jagan's eligibility under the Bonus Act, Company's Policy, Company falling under the Payment of Bonus Act (having completed 5 years, etc.). Regards,
Sundararaman
From India, Madras
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Dear Concern,
A bonus of 8.33% is provided on the basic salary. Some companies offer a bonus based on the current basic salary, while others provide a bonus of 3500/-. Both methods comply with labor laws. The company disburses bonuses for the previous financial year (2011-11). For instance, employees who joined a company after March 2011 are ineligible for the bonus, whereas those who joined before April 2011 qualify. Attendance records are considered in this calculation.
If there are any discrepancies in my understanding, please inform me.
Shyam Chauhan
From India, Gurgaon
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A bonus of 8.33% is provided on the basic salary. Some companies offer a bonus based on the current basic salary, while others provide a bonus of 3500/-. Both methods comply with labor laws. The company disburses bonuses for the previous financial year (2011-11). For instance, employees who joined a company after March 2011 are ineligible for the bonus, whereas those who joined before April 2011 qualify. Attendance records are considered in this calculation.
If there are any discrepancies in my understanding, please inform me.
Shyam Chauhan
From India, Gurgaon
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Dear Friends I have joined a new organisation before 10 days only. can i claim bonus from company Regards Prakash K
From India, Tiruppur
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From India, Tiruppur
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Dear Seniors,
I have a query regarding the bonus. One employee joined the company on 27/02/2011 and has been working since then. However, my colleague (who handles bonuses) informed us that he is not eligible for the 2010-2011 bonus because he did not complete 30 working days in the financial year 2010-2011, even though we paid his full-month salary for March 2011 and 2 days' salary for February 2011.
Therefore, please advise us on whether he is eligible for a bonus of one month or not.
Regards,
R.P. Dixit
From India, New Delhi
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I have a query regarding the bonus. One employee joined the company on 27/02/2011 and has been working since then. However, my colleague (who handles bonuses) informed us that he is not eligible for the 2010-2011 bonus because he did not complete 30 working days in the financial year 2010-2011, even though we paid his full-month salary for March 2011 and 2 days' salary for February 2011.
Therefore, please advise us on whether he is eligible for a bonus of one month or not.
Regards,
R.P. Dixit
From India, New Delhi
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If he is Staff and you process your salary based on 30 days attendance basis, yes he is eligible. Minimum bonus amount is Rs.100/- or at actuals whichever is higher. Sundararaman
From India, Madras
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From India, Madras
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Your past experience has nothing to do with the receipt of Bonus. To claim a bonus:
1. One must have worked for a minimum period of 30 days in a company during the bonus period.
2. Must have drawn wages (basic + DA) <= Rs.10,000/- per month.
Rate of Bonus:
1. As per the Bonus Act, it is a minimum of 8.33% of his gross annual (basic + DA) earnings.
2. Ceiling on bonus is Rs.3500/- per month (or Rs.42,000 per annum) currently.
3. It is at the discretion of management to pay more than the prescribed limit (i.e. 8.33%), or otherwise.
Therefore, whether you have 5 years of experience or 30 years of experience does not make a difference here.
Balaji
From India, Madras
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1. One must have worked for a minimum period of 30 days in a company during the bonus period.
2. Must have drawn wages (basic + DA) <= Rs.10,000/- per month.
Rate of Bonus:
1. As per the Bonus Act, it is a minimum of 8.33% of his gross annual (basic + DA) earnings.
2. Ceiling on bonus is Rs.3500/- per month (or Rs.42,000 per annum) currently.
3. It is at the discretion of management to pay more than the prescribed limit (i.e. 8.33%), or otherwise.
Therefore, whether you have 5 years of experience or 30 years of experience does not make a difference here.
Balaji
From India, Madras
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Mr. Prakash - you will not be eligible for Bonus under the Payment of Bonus Act. But if your Managements just give you some token amount as a gesture - it is totally different.
From India, Madras
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From India, Madras
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Dear Friend,
Some companies calculate the amount of bonus based on the number of days present in the organization during the financial year. Even if the employee's basic salary is Rs. 10,000, the bonus will be calculated based on a basic salary of Rs. 3,500 per month.
For example:
Basic: Rs. 3,500
Months: 12
Total Amount: 3,500 X 12 = Rs. 42,000
8.33% of Rs. 42,000 is Rs. 3,500.
Calculation:
If the company pays a bonus of 8.33%:
Rs. 3,500
Total working days in a year for the employee: 250 days
3,500 / 365 * 250
The bonus amount will be Rs. 2,397.
Therefore, you can calculate the bonus ranging from 8.33% to 20%.
With regards,
Vivek
From India, Barddhaman
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Some companies calculate the amount of bonus based on the number of days present in the organization during the financial year. Even if the employee's basic salary is Rs. 10,000, the bonus will be calculated based on a basic salary of Rs. 3,500 per month.
For example:
Basic: Rs. 3,500
Months: 12
Total Amount: 3,500 X 12 = Rs. 42,000
8.33% of Rs. 42,000 is Rs. 3,500.
Calculation:
If the company pays a bonus of 8.33%:
Rs. 3,500
Total working days in a year for the employee: 250 days
3,500 / 365 * 250
The bonus amount will be Rs. 2,397.
Therefore, you can calculate the bonus ranging from 8.33% to 20%.
With regards,
Vivek
From India, Barddhaman
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Hi Govipattu Ji,
As per company policy, if you are a regular employee in your present company, you will receive a financial year-wise bonus. Even upon completion of 6 months, you will also receive a regular monthly bonus. Trainees will not be eligible for a bonus.
Regards,
Amrutha.
From India, Visakhapatnam
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As per company policy, if you are a regular employee in your present company, you will receive a financial year-wise bonus. Even upon completion of 6 months, you will also receive a regular monthly bonus. Trainees will not be eligible for a bonus.
Regards,
Amrutha.
From India, Visakhapatnam
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf