Please tell me the how much maximum amount of a bonus, as per bonus act a person can take. It’s 20% on CTC, but i need the maximum amount. Pls suggest. Regards, Archana
From India, Mumbai
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2From India, Mumbai
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Kindly click on the following link. It will provide you with the required information: https://www.citehr.com/search_new.ph...;amp;submit=Go
From India, Coimbatore
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From India, Coimbatore
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Hello,
You know the following basics:
1) The Payment of Bonus Act 1965 covers employees who draw wages/salaries up to and including Rs. 3500/- per month (including just Basic+D.A.).
2) The Bonus under the Act (derived by the formula and rules provided under it) is paid as per the following positions:
a) Up to a basic+DA of Rs. 2500/- p.m. on the actual wage/salary drawn by the person during the relevant period.
b) Between Rs. 2500/- and Rs. 3500/-, the derived bonus will be paid as though the wage/salary was Rs. 3500/- p.m.
c) For wage/salary above Rs. 3500/- p.m., the person is beyond the scope of the Act.
3) Therefore, the maximum bonus that can be paid in the present situation is Rs. 6000/- for the year.
4) You may also like to know that Bonus under the law is payable to any and every employee (temporary, permanent, etc.) who has worked for a minimum period of 30 days during the particular year.
5) What the company does BEYOND the provisions of the Act is neither supported by the Act nor required by it!
Finally, presently, a proposal is under the government's consideration to raise upwards the coverage limit of Rs. 3500/- per month. It may go up to Rs. 7500/- p.m. or Rs. 10000/- p.m.
But one thing is CLEAR that the Act does NOT mandate payment of Bonus on CTC at all.
I trust your queries stand resolved.
Regards,
Samvedan
August 9, 2007
From India, Pune
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You know the following basics:
1) The Payment of Bonus Act 1965 covers employees who draw wages/salaries up to and including Rs. 3500/- per month (including just Basic+D.A.).
2) The Bonus under the Act (derived by the formula and rules provided under it) is paid as per the following positions:
a) Up to a basic+DA of Rs. 2500/- p.m. on the actual wage/salary drawn by the person during the relevant period.
b) Between Rs. 2500/- and Rs. 3500/-, the derived bonus will be paid as though the wage/salary was Rs. 3500/- p.m.
c) For wage/salary above Rs. 3500/- p.m., the person is beyond the scope of the Act.
3) Therefore, the maximum bonus that can be paid in the present situation is Rs. 6000/- for the year.
4) You may also like to know that Bonus under the law is payable to any and every employee (temporary, permanent, etc.) who has worked for a minimum period of 30 days during the particular year.
5) What the company does BEYOND the provisions of the Act is neither supported by the Act nor required by it!
Finally, presently, a proposal is under the government's consideration to raise upwards the coverage limit of Rs. 3500/- per month. It may go up to Rs. 7500/- p.m. or Rs. 10000/- p.m.
But one thing is CLEAR that the Act does NOT mandate payment of Bonus on CTC at all.
I trust your queries stand resolved.
Regards,
Samvedan
August 9, 2007
From India, Pune
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wHAT S THE MAXIMUM SEALING AMOUNT OF BONUS IS THERE ANY RULES OR ACT IS THERE FOR THE SAME, PLEASE HELP A.V.PRAKASH
From India
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From India
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Dear Prakash,
The Payment of Bonus Act 1965 describes that the maximum bonus is 20% of the wage, and the minimum bonus is 8.33% of the wage. It is clarified in the sections as follows:
Sec-10: Minimum Bonus - 8.33% of the wage
Sec-11: Maximum Bonus - 20% of the wage
According to the amendment for the Payment of Bonus Act on 27th October 2007, Sec-12 (Calculation of bonus means wage describes 3500/-) and Sec-2 clause 13 defines "employee" as any person (other than an apprentice) employed on a salary or wage not exceeding 10,000/- per mensem.
Example:
Mr. A earns a wage of 8500/- (Basic) per month and allowances 1000/-. He will get the bonus as follows:
If the bonus rate fixed for the employee is 20%:
Bonus = 3500 X 12 X 20% = 8400/-
Ex gratia = 5000 X 12 X 20% = 12,000/-
Total = 20,400/-
If the bonus rate fixed for the employee is 8.33%:
Bonus = 8500 X 12 X 8.33% = 8400 + 96/-. We can show in the calculation as Bonus = 8400 + Ex gratia = 96/-
Total = 8,496/-
You may clarify any doubts regarding the payment of Bonus.
Thanks,
Jagan
(
)
9903599794
From India, Visakhapatnam
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The Payment of Bonus Act 1965 describes that the maximum bonus is 20% of the wage, and the minimum bonus is 8.33% of the wage. It is clarified in the sections as follows:
Sec-10: Minimum Bonus - 8.33% of the wage
Sec-11: Maximum Bonus - 20% of the wage
According to the amendment for the Payment of Bonus Act on 27th October 2007, Sec-12 (Calculation of bonus means wage describes 3500/-) and Sec-2 clause 13 defines "employee" as any person (other than an apprentice) employed on a salary or wage not exceeding 10,000/- per mensem.
Example:
Mr. A earns a wage of 8500/- (Basic) per month and allowances 1000/-. He will get the bonus as follows:
If the bonus rate fixed for the employee is 20%:
Bonus = 3500 X 12 X 20% = 8400/-
Ex gratia = 5000 X 12 X 20% = 12,000/-
Total = 20,400/-
If the bonus rate fixed for the employee is 8.33%:
Bonus = 8500 X 12 X 8.33% = 8400 + 96/-. We can show in the calculation as Bonus = 8400 + Ex gratia = 96/-
Total = 8,496/-
You may clarify any doubts regarding the payment of Bonus.
Thanks,
Jagan
(
9903599794
From India, Visakhapatnam
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Dear Prakash,
The Payment of Bonus Act 1965 describes the payment of a maximum bonus of 20% of the wage and a minimum bonus of 8.33% of the wage. It is clarified in the sections as follows:
Sec-10: Minimum Bonus - 8.33% of wage Sec-11: Maximum Bonus - 20% of wage
As per the amendment for the Payment of Bonus Act on 27th October 2007, Sec-12 (Calculation of bonus means wage describes 3500/-) and Sec-2 clause 13 definition of "employee" means any person (other than an apprentice) employed on a salary or wage not exceeding 10,000/- per mensem.
Example:
Mr. A earns a wage of 8500/- (Basic) per month and allowances of 1000/-. He will get the bonus as follows:
If Basic+DA is less than 10,000/-, then for the calculation of Bonus, it will be taken as 3500/- only.
If the bonus rate fixed for the employee is 20%:
Bonus = 3500 X 12 X 20% = 8400/- Ex gratia = 5000 X 12 X 20% = 12,000/-
Total = 20,400/-
If the bonus rate fixed for the employee is 8.33%:
Bonus = 8500 X 12 X 8.33% = 8400+96/-; we can show in the calculation as Bonus = 8400 + Ex gratia = 96/-
Total = 8,496/-
You may clarify the doubt in the payment of Bonus.
Thanks, Jagan
(9903599794)
From India, Hyderabad
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The Payment of Bonus Act 1965 describes the payment of a maximum bonus of 20% of the wage and a minimum bonus of 8.33% of the wage. It is clarified in the sections as follows:
Sec-10: Minimum Bonus - 8.33% of wage Sec-11: Maximum Bonus - 20% of wage
As per the amendment for the Payment of Bonus Act on 27th October 2007, Sec-12 (Calculation of bonus means wage describes 3500/-) and Sec-2 clause 13 definition of "employee" means any person (other than an apprentice) employed on a salary or wage not exceeding 10,000/- per mensem.
Example:
Mr. A earns a wage of 8500/- (Basic) per month and allowances of 1000/-. He will get the bonus as follows:
If Basic+DA is less than 10,000/-, then for the calculation of Bonus, it will be taken as 3500/- only.
If the bonus rate fixed for the employee is 20%:
Bonus = 3500 X 12 X 20% = 8400/- Ex gratia = 5000 X 12 X 20% = 12,000/-
Total = 20,400/-
If the bonus rate fixed for the employee is 8.33%:
Bonus = 8500 X 12 X 8.33% = 8400+96/-; we can show in the calculation as Bonus = 8400 + Ex gratia = 96/-
Total = 8,496/-
You may clarify the doubt in the payment of Bonus.
Thanks, Jagan
(9903599794)
From India, Hyderabad
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The Payment Of Bonus Act, 1965 5 november 2016.pdf
Payment of Bonus Act 1965.doc