My payment is calculated as 897 wages X 26 days, resulting in a gross payment of 23,322.00. Is a bonus applicable or not? (Rs. 21,000.00 X 8.33% = 1,749.30 / 26 = 67.28 per day).
Is it possible to receive a bonus at a salary of 21,000.00? Please suggest or guide me.
From India, Bangalore
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Is it possible to receive a bonus at a salary of 21,000.00? Please suggest or guide me.
From India, Bangalore
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If the earned gross salary is more than Rs. 21,000, no bonus shall become payable to the employee. However, if any part of the year accounted for wages of Rs. 21,000 or less, the earned salary for that period will qualify for a bonus. For employees with a salary of more than Rs. 21,000, there is no need to pay a bonus, treating it as Rs. 21,000. Moreover, even for employees within the bonus wage ceiling limit of Rs. 21,000, you can pay a bonus calculated on the basis of a salary of Rs. 7,000 or statutory minimum wages, whichever is higher.
Simply, an employee whose salary is Rs. 21,001 need not be given a bonus. In respect of an employee whose salary is Rs. 21,000, you should pay a bonus. The bonus need not be calculated on Rs. 21,000 but can be capped at 8.33% of Rs. 7,000 for each month. If the statutory wages fixed by the government are, say, Rs. 12,000, then you should calculate the bonus on Rs. 12,000 as if their wage is Rs. 12,000 per month.
From India, Kannur
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4526Simply, an employee whose salary is Rs. 21,001 need not be given a bonus. In respect of an employee whose salary is Rs. 21,000, you should pay a bonus. The bonus need not be calculated on Rs. 21,000 but can be capped at 8.33% of Rs. 7,000 for each month. If the statutory wages fixed by the government are, say, Rs. 12,000, then you should calculate the bonus on Rs. 12,000 as if their wage is Rs. 12,000 per month.
From India, Kannur
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Every employee who is drawing a salary/wages (basic + DA) up to Rs. 21,000/- per month and who has worked for a minimum period of 30 days in a year is entitled to be paid a bonus as per the Payment of Bonus Act.
As per the Act, the bonus amount is paid at a rate of 8.33% to 20% of the ceiling limit - Rs. 7,000/- or the minimum wages (basic + D.A.), whichever is higher.
From India, Thane
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As per the Act, the bonus amount is paid at a rate of 8.33% to 20% of the ceiling limit - Rs. 7,000/- or the minimum wages (basic + D.A.), whichever is higher.
From India, Thane
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Though the statutory bonus is not payable for wages beyond Rs. 21,000/- as per the Payment of Bonus Act 1965, many organizations choose to provide the same amount or pay a different amount as an incentive to other employees. After all, everyone has contributed and should receive their due share of the benefits.
From India, Mumbai
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From India, Mumbai
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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