Dear friends, Is BONUS necessary to pay every year as per Industrial law? I know that minimum bonus rate is 8.33% and maximum bonus rate is 20%. Is it correct? Please suggest. Thanks & Regards, Aazad
From India, Vijayawada
1From India, Vijayawada
Dear Frnz,
I am working for a small IT company since march 2009. I was told as there is no Bonus in our organisation. I discussed with director regarding the same & even told as company is not paying any bonus since it started. Our organisation is started on 21st June 2006. It just finished 3 years.
Is it must for IT industries for the payment of bonus
Thanks for your valuable replies in advance
Cheerz
Jeeva
From India, Bangalore
I am working for a small IT company since march 2009. I was told as there is no Bonus in our organisation. I discussed with director regarding the same & even told as company is not paying any bonus since it started. Our organisation is started on 21st June 2006. It just finished 3 years.
Is it must for IT industries for the payment of bonus
Thanks for your valuable replies in advance
Cheerz
Jeeva
From India, Bangalore
Hi...
Bonus is mandatory under Payment of Bonus Act. It is payable to the employees whose salary is less than Rs. 10000/- p.m. & is payable min. 8.33% and max. 20% depending upon the allocalble and available surplus. The limit of salary for calculation of bonus is Rs. 3500/-. The bonus can be set on and set off as per the act. If there is loss to the company then the amount of bonus is to be set on for the next five years and vise versa. The bonus is payable in 1st five years only for the years in which the company has earned profit.
Regards
Rajendra Bhavsar
09850869517
From India, Mumbai
Bonus is mandatory under Payment of Bonus Act. It is payable to the employees whose salary is less than Rs. 10000/- p.m. & is payable min. 8.33% and max. 20% depending upon the allocalble and available surplus. The limit of salary for calculation of bonus is Rs. 3500/-. The bonus can be set on and set off as per the act. If there is loss to the company then the amount of bonus is to be set on for the next five years and vise versa. The bonus is payable in 1st five years only for the years in which the company has earned profit.
Regards
Rajendra Bhavsar
09850869517
From India, Mumbai
Dear Azzad,
As per the provisions of the Bonus Act, every industry/Factory has to pay the bonus for the accounting year to their employees. For the industry/Factory started within five years are exemption to pay bonus, but in during any year if they earn/show profit, they have to pay bonus between 8.33% to 20%. It is payable to the employees whose salary is less than Rs. 10000/- p.m. & is payable min. 8.33% and max. 20% depending upon the allocalble and available surplus. The ceiling of bonus is also extended to Rs.3500/- pm.
Regards
R.Palaniswamy
From India, Coimbatore
As per the provisions of the Bonus Act, every industry/Factory has to pay the bonus for the accounting year to their employees. For the industry/Factory started within five years are exemption to pay bonus, but in during any year if they earn/show profit, they have to pay bonus between 8.33% to 20%. It is payable to the employees whose salary is less than Rs. 10000/- p.m. & is payable min. 8.33% and max. 20% depending upon the allocalble and available surplus. The ceiling of bonus is also extended to Rs.3500/- pm.
Regards
R.Palaniswamy
From India, Coimbatore
We know that as bonus act whose employee salary is up to Rs. 10,000/- payable to bonus. But the other thing that is the limit of salary for calculation of bonus is Rs. 3500/-.What is this means.
If any worker salary is Rs. 7000/- then would we calculate the bonus 8.33 % to 20 % with Rs. 7000/- as his salary or Rs.3500/- as per bonus act. Please advice.
With Regards
Ashok
From India, Gurgaon
If any worker salary is Rs. 7000/- then would we calculate the bonus 8.33 % to 20 % with Rs. 7000/- as his salary or Rs.3500/- as per bonus act. Please advice.
With Regards
Ashok
From India, Gurgaon
Hi Mr. Aazad
As per Bonus Act 1965:
1. The payment of bonus is applicable to all establishments employing 20 or more workmen
2. you are right the minimum percentage of bonus is 8.33 but there is a ceiling limit of Rs.3500.00 so calculating bonus on salary at 8.33 if the amount is more than Rs.3500 you can pay only Rs.3500.00 as per the act i.e. the minimum bonus.
3. If the employer is not a miser person, he can pay 8.33% on the salary / Wage even if exceed more than Rs.3500.00
4. If the employer is still a open minded and getting more of profits to his company, he can go for payment of bonus upto 20% of salary, this payment is accepted by Income Tax department.
5. The minimum bonus is Rs.100.00 or more.
6. The employee had to work at least for a period of 30 days in order to be eligible for getting minimum bonus i.e. 100.00 or more calculated on the salary he drawn for 30 days period which ever is more.
7. All the employee have a statutory right to share the profits of the employer as per the said Act.
8. The Company had to complete 5 years from the date of commencing the establishment operations, for making bonus payments to its employees.
Mohan Rao
Manager HR
From India, Visakhapatnam
As per Bonus Act 1965:
1. The payment of bonus is applicable to all establishments employing 20 or more workmen
2. you are right the minimum percentage of bonus is 8.33 but there is a ceiling limit of Rs.3500.00 so calculating bonus on salary at 8.33 if the amount is more than Rs.3500 you can pay only Rs.3500.00 as per the act i.e. the minimum bonus.
3. If the employer is not a miser person, he can pay 8.33% on the salary / Wage even if exceed more than Rs.3500.00
4. If the employer is still a open minded and getting more of profits to his company, he can go for payment of bonus upto 20% of salary, this payment is accepted by Income Tax department.
5. The minimum bonus is Rs.100.00 or more.
6. The employee had to work at least for a period of 30 days in order to be eligible for getting minimum bonus i.e. 100.00 or more calculated on the salary he drawn for 30 days period which ever is more.
7. All the employee have a statutory right to share the profits of the employer as per the said Act.
8. The Company had to complete 5 years from the date of commencing the establishment operations, for making bonus payments to its employees.
Mohan Rao
Manager HR
From India, Visakhapatnam
Hi Mr. Aazad
As per Bonus Act 1965:And Amendment 2006
1. The payment of bonus is applicable to all establishments employing 20 or more workmen
2. you are right the minimum percentage of bonus is 8.33 but there is a ceiling limit of Rs.3500.00 (Bonus calculation those employee who was getting Basic Salary of Rs. 10000.00 per month )so calculating bonus on salary at 8.33 if the amount is more than Rs.3500 you can pay only Rs.3500.00 as per the act i.e. the minimum bonus.
3. If the employer is still a open minded and getting more of profits to his company, he can go for payment of bonus upto 20% of salary, this payment is accepted by Income Tax department.
4. The minimum bonus is Rs.100.00 or more.
5. The employee had to work at least for a period of 30 days in order to be eligible for getting minimum bonus i.e. 100.00 or more calculated on the salary he drawn for 30 days period which ever is more.
6. All the employee have a statutory right to share the profits of the employer as per the said Act.
7. The Company had to complete 5 years from the date of commencing the establishment operations, for making bonus payments to its employees.
G.J.Panchal
Manager Personnel & Admin
From India, Ahmadabad
As per Bonus Act 1965:And Amendment 2006
1. The payment of bonus is applicable to all establishments employing 20 or more workmen
2. you are right the minimum percentage of bonus is 8.33 but there is a ceiling limit of Rs.3500.00 (Bonus calculation those employee who was getting Basic Salary of Rs. 10000.00 per month )so calculating bonus on salary at 8.33 if the amount is more than Rs.3500 you can pay only Rs.3500.00 as per the act i.e. the minimum bonus.
3. If the employer is still a open minded and getting more of profits to his company, he can go for payment of bonus upto 20% of salary, this payment is accepted by Income Tax department.
4. The minimum bonus is Rs.100.00 or more.
5. The employee had to work at least for a period of 30 days in order to be eligible for getting minimum bonus i.e. 100.00 or more calculated on the salary he drawn for 30 days period which ever is more.
6. All the employee have a statutory right to share the profits of the employer as per the said Act.
7. The Company had to complete 5 years from the date of commencing the establishment operations, for making bonus payments to its employees.
G.J.Panchal
Manager Personnel & Admin
From India, Ahmadabad
DEAR SIR,
I AM WORKING WITH PUBLIC SECTOR COMPANY SINCE DECEMBER 2007. OUR COMPANY REGISTERED FROM SEPTEMBER 2006 AND I WAS TOLD AS THERE IS NO BONUS IN OUR ORGANISATION. I DISCUSSED WITH MY SR.MANAGER REGARDING THIS MATTER. BUT HE TOLD ME AS PER AS PAYMENT OF BONUS ACT 1965 WE ARE NOT ELIGIBLE FOR THIS YEAR.ACCORDING TO RULES SAYS "In the first five accounting year following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this act in relation to that year, but with out applying the provisions of section 15.
THANKS,
PKUMAR
From India, Delhi
I AM WORKING WITH PUBLIC SECTOR COMPANY SINCE DECEMBER 2007. OUR COMPANY REGISTERED FROM SEPTEMBER 2006 AND I WAS TOLD AS THERE IS NO BONUS IN OUR ORGANISATION. I DISCUSSED WITH MY SR.MANAGER REGARDING THIS MATTER. BUT HE TOLD ME AS PER AS PAYMENT OF BONUS ACT 1965 WE ARE NOT ELIGIBLE FOR THIS YEAR.ACCORDING TO RULES SAYS "In the first five accounting year following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this act in relation to that year, but with out applying the provisions of section 15.
THANKS,
PKUMAR
From India, Delhi
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