Is there a law to give bonus compulsory to the employees. Please guide me in the Calculation of bonus
From India, Mumbai
6From India, Mumbai
Dear Friend, To my knowledge, Bonus has to be given to all the employees under the Payment of Bonus Act - 1965. As per act, the Minimum bonus is 8.33%, Maximum Bonus is 20%. Regards S. Achuthananda
From India, Pune
From India, Pune
Hai plz check this
The Bonus Plan first calculates a Bonus Fund. This is the actual amount of money that the organization is prepared to allocate for bonus use. Next, an average performance appraisal rating is determined for each employee.
If an employee scores higher than a pre-determined level, he or she is bonus-eligible. The size of the bonus paid depends on the total number of Bonus Points to which an employee is entitled.
The number of Bonus Points is determined by both the employee's performance (as reflected in their average rating) and the employee's current salary range.
Finally, a simple formula is used to exactly allocate the money in the Bonus Fund to all eligible employees.
Full Description
There are five separate steps in the Bonus Plan -
Calculate the Bonus Fund
Determine Bonus Eligibility
Select Bonus Band
Select Salary Band
Calculate Individual Bonuses
For more information you can visit this web link
#bonus
Regards
Shilpa
From India, Bangalore
The Bonus Plan first calculates a Bonus Fund. This is the actual amount of money that the organization is prepared to allocate for bonus use. Next, an average performance appraisal rating is determined for each employee.
If an employee scores higher than a pre-determined level, he or she is bonus-eligible. The size of the bonus paid depends on the total number of Bonus Points to which an employee is entitled.
The number of Bonus Points is determined by both the employee's performance (as reflected in their average rating) and the employee's current salary range.
Finally, a simple formula is used to exactly allocate the money in the Bonus Fund to all eligible employees.
Full Description
There are five separate steps in the Bonus Plan -
Calculate the Bonus Fund
Determine Bonus Eligibility
Select Bonus Band
Select Salary Band
Calculate Individual Bonuses
For more information you can visit this web link
#bonus
Regards
Shilpa
From India, Bangalore
Bonus is payable my Bonus ACT. Books on the act is available in market you can go and buy for in-depth detail.
As far as Factory work are concerned Bonus is applicable if you agreement with the union is so or else as per the company policy.
Further Bonus is calculated on gross profit minimum bonus payable is 8.33% and maximum is 20% of the Basic and DA.
Again Bonus is applicable to only those who are drawing salary of 3500/- (Basic + DA) or below.
The calculation formula is 2500 x 12 =x*20%
2500 is the bottom line as per the act you cannot calculate below this figure.
regards
Shakila
From India, Mumbai
As far as Factory work are concerned Bonus is applicable if you agreement with the union is so or else as per the company policy.
Further Bonus is calculated on gross profit minimum bonus payable is 8.33% and maximum is 20% of the Basic and DA.
Again Bonus is applicable to only those who are drawing salary of 3500/- (Basic + DA) or below.
The calculation formula is 2500 x 12 =x*20%
2500 is the bottom line as per the act you cannot calculate below this figure.
regards
Shakila
From India, Mumbai
Hi,
If you look at statutory point of view, Bonus is to be paid under the payment of bonus act, 1965 and the act says that the employees whose gross salary is below Rs.3,500/- should be paid bonus. Bonus is to be paid @8.33% of annual gross salary of such employee. The maximum bonus that can be paid to an employee is 20% of annual gross salary.
But nowadays, all companies are giving bonus to their employees as a goodwill gesture and motivation factor.
I believe, no company gives a salary below Rs.3,500/- to their employees. So the stautory obligation never comes to a question.
regards,
srihari rao
From India, Delhi
If you look at statutory point of view, Bonus is to be paid under the payment of bonus act, 1965 and the act says that the employees whose gross salary is below Rs.3,500/- should be paid bonus. Bonus is to be paid @8.33% of annual gross salary of such employee. The maximum bonus that can be paid to an employee is 20% of annual gross salary.
But nowadays, all companies are giving bonus to their employees as a goodwill gesture and motivation factor.
I believe, no company gives a salary below Rs.3,500/- to their employees. So the stautory obligation never comes to a question.
regards,
srihari rao
From India, Delhi
Dear Shilpa,
To my knowledge, bonus is calculated on the basis of the Payment of Bonus act 1965, not on the basis on performance.
As per your description, it is applicable to individual performance appraisal.
Regards
S. Achuthananda
From India, Pune
To my knowledge, bonus is calculated on the basis of the Payment of Bonus act 1965, not on the basis on performance.
As per your description, it is applicable to individual performance appraisal.
Regards
S. Achuthananda
From India, Pune
Good Piece of Information,,, Thank You,,, For More on that, Pls Click the following links, Regards Mohamed Sardhar 093831 93832
From India, Coimbatore
From India, Coimbatore
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Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf
Bonus-amendment _206.doc