Can we settle the bonus with a monthly salary? if yes, then which act or rules allow us to do this?
From India, Bikaner
From India, Bikaner
Hi
I think you are referring to statutory minimum bonus of 8.33%.
As per the amendment on the Payment of Bonus Bill passed in 2015, if the gross earning of the employee is below Rs. 21,000, employers are liable to pay bonuses. The bonus will be calculated as follows:
If salary is equal to or less than Rs. 7,000, then the bonus will be calculated on the actual amount by using the formula: Bonus= Salary x 8.33 / 100
If salary is more than Rs. 7,000, then the bonus will be calculated on Rs. 7,000 by using the formula: Bonus= 7,000 x 8.33 /100
Note: Salary means: Basic Salary + Dearness Allowance.
If you are paying overall monthly salary instead of basic+Da then it would be good.
From India, Madras
919I think you are referring to statutory minimum bonus of 8.33%.
As per the amendment on the Payment of Bonus Bill passed in 2015, if the gross earning of the employee is below Rs. 21,000, employers are liable to pay bonuses. The bonus will be calculated as follows:
If salary is equal to or less than Rs. 7,000, then the bonus will be calculated on the actual amount by using the formula: Bonus= Salary x 8.33 / 100
If salary is more than Rs. 7,000, then the bonus will be calculated on Rs. 7,000 by using the formula: Bonus= 7,000 x 8.33 /100
Note: Salary means: Basic Salary + Dearness Allowance.
If you are paying overall monthly salary instead of basic+Da then it would be good.
From India, Madras
You can pay 8.33% of the salary as bonus subject to the above conditions explained by Lakshmi Narayan. But you cannot fix the rate at 8.33% because the rare of bonus should depend on the profits earned by the company. Depending upon the profits the rate shall vary from 8.33% to 20%. The profits mean the surplus arrived at following the steps elaborated in the Payment of Bonus Act and not the net profits as evidenced by the financial statements of the company alone.
From India, Kannur
From India, Kannur
I would like to add to Mr. Lakshminarayanan and Madhu Jee's comments that, under the amended Payment of Bonus Act, the minimum bonus is computed on Rs.7000 or the applicable minimum wage, whichever is higher.
Regards,
Suresh
From India, Thane
Regards,
Suresh
From India, Thane
Suresh, that was clarified by Lakshmi Narayan in his post. But I would like to make a correction in your post and that is, it is not the minimum bonus which is computed on Rs 7000 or the notified minimum wages whichever is high BUT if the establishment has higher allocable/ available surpluses the rate of bonus which shall vary from 8.33% (minimum) to 20% (maximum) and the amount of bonus shall be computed on Rs 7000 or the notified minimum wages whichever is high. If you decide to pay 20% bonus, then it shall be calculated on a salary of Rs 7000 or the notified statutory wages only.
From India, Kannur
From India, Kannur
yes, you can add bonus in monthly salary/wages , Statutory bonus return filing and keeping the record is mandatory.
From India , Pune
From India , Pune
Yes, Madhu jee,
I indicated a minimum bonus sum of Rs.7000, however, based on allocable surpluses, the bonus computation on Rs.7000 might be as high as Rs.16800 (20%).
Although Mr. Lakshminarayanan stated in his post that salary meant Basic + DA, some of our junior members get puzzled and so specified as applicable Minimum Wages which can be a maximum of 20% based on allocable surpluses.
Suresh
From India, Thane
I indicated a minimum bonus sum of Rs.7000, however, based on allocable surpluses, the bonus computation on Rs.7000 might be as high as Rs.16800 (20%).
Although Mr. Lakshminarayanan stated in his post that salary meant Basic + DA, some of our junior members get puzzled and so specified as applicable Minimum Wages which can be a maximum of 20% based on allocable surpluses.
Suresh
From India, Thane
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf
Bonus-amendment _206.doc