Hi Seniors,
Pl c the link as the President has signed new Bonus Act Today ,where the ceiling has been raised the eligibility limit for payment of bonus from the salary or wage of Rs. 3500/- per month to Rs. 10000/- per month.
http://pib.nic.in/release/release.asp?relid=32264
But i being a HR in KPO not getting the things that are we covered under this Act? Is ITES industry covered under the new Bonus Act?
Pl respond Today
From Spain
1Pl c the link as the President has signed new Bonus Act Today ,where the ceiling has been raised the eligibility limit for payment of bonus from the salary or wage of Rs. 3500/- per month to Rs. 10000/- per month.
http://pib.nic.in/release/release.asp?relid=32264
But i being a HR in KPO not getting the things that are we covered under this Act? Is ITES industry covered under the new Bonus Act?
Pl respond Today
From Spain
Dear Bharat,
Thanks a lot for the information. By the way i think it is applicable for all, but i am not sure on that will definitely keep you informed once i get the information. Friends can anyone of you confirm us on the same.
Regards
Amith R.
From India, Bangalore
Thanks a lot for the information. By the way i think it is applicable for all, but i am not sure on that will definitely keep you informed once i get the information. Friends can anyone of you confirm us on the same.
Regards
Amith R.
From India, Bangalore
Hello,
as per the new ammendement signed,
the other things are unchanged....so that we can enjoy the bonus if paid less than 10,000/-
Only one thing is applicable where your company may not pay any bonus
i.e. if your establishment has not completed 5 yrs.
Regards,
From India, Ahmadabad
as per the new ammendement signed,
the other things are unchanged....so that we can enjoy the bonus if paid less than 10,000/-
Only one thing is applicable where your company may not pay any bonus
i.e. if your establishment has not completed 5 yrs.
Regards,
From India, Ahmadabad
Dear Shahanal,
Thanks a lot for the update. Kindly confirm me is the eff date is 1st of April as mentioned in the link mentioned above.
And also clarify on the point number two in that link menitoned in the press release statement, which i have mentioned below.
ii) Amendment to section 12 of the Payment of Bonus Act, 1965 to raise the ceiling for calculation purpose from the salary or wage of Rs. 2500/- per month to Rs. 3500/- per month;
Looking forward for your replies.
Regards
Amith R.
From India, Bangalore
Thanks a lot for the update. Kindly confirm me is the eff date is 1st of April as mentioned in the link mentioned above.
And also clarify on the point number two in that link menitoned in the press release statement, which i have mentioned below.
ii) Amendment to section 12 of the Payment of Bonus Act, 1965 to raise the ceiling for calculation purpose from the salary or wage of Rs. 2500/- per month to Rs. 3500/- per month;
Looking forward for your replies.
Regards
Amith R.
From India, Bangalore
hello,
As your company is 3.5 years old, it may or may not pay the bonuses.
It is solely on the management dicission. if it is a good profit making company than it may pay bonus but they are not bound to doso.
minimum Bonus shall be
8.33 per cent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year
Maximum bonus shall be
In respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting; year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent, of such salary or wage.
**Any ammount can be paid above the maximum limit also but that shall be treated under the head of ex gratia payment.
Regards,
From India, Ahmadabad
As your company is 3.5 years old, it may or may not pay the bonuses.
It is solely on the management dicission. if it is a good profit making company than it may pay bonus but they are not bound to doso.
minimum Bonus shall be
8.33 per cent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year
Maximum bonus shall be
In respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting; year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent, of such salary or wage.
**Any ammount can be paid above the maximum limit also but that shall be treated under the head of ex gratia payment.
Regards,
From India, Ahmadabad
Hello Amit,
i am not getting the Bonus act now so not much clear about the section 12 but it is likely to say that the maximum payment of bonus which was till now is 2500/- is increased to 3500/-...
So it is a good news for all those who are eligible for the bonus under the bonus act.
Regards,
From India, Ahmadabad
i am not getting the Bonus act now so not much clear about the section 12 but it is likely to say that the maximum payment of bonus which was till now is 2500/- is increased to 3500/-...
So it is a good news for all those who are eligible for the bonus under the bonus act.
Regards,
From India, Ahmadabad
Hello Bharat,
Sorry I was unable to find the soft copy of the whole document but here is the section mentioning that...
It is Section 16 of the act,
__________________________________________________ _______
16. Special provisions with respect to certain establishment— 2[(1) Where an establishment newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to be paid bonus under this Act in accordance with the provisions of sub-section (1A), (1B) and (1C).
(1A) 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.
(1B) For the sixth and seventh 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, the provisions of section 15 shall apply subject other following modifications, namely:--
(i) for the sixth accounting year --
set on or set off, as the case may be, shall be made in the manner illustrated in the 1[Fourth Schedule] taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth and sixth accounting years;
(ii) for the seventh accounting year --
set on or set off, as the case may be, shall be made in the manner illustrated in the 1[Fourth Schedule] taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth, sixth and seventh accounting year.
(1C) From the eighth 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, the provisions of section 15 shall apply in relation to such establishment as they apply in relation to any other establishment.
Explanation I. – For the purpose of sub-section (1), an establishment shall not be newly set up merely by reason of a change in its location, management, name or ownership.
Explanation II. -- For the purpose of sub-section (1A), an employer shall not be deemed to have derived profit in any accounting year unless –
(a) he has made provision for that year’s depreciation to which he is entitled under the Income-tax Act or, as the case may be, under the agricultural income-tax, law; and
(b) the arrears of such depreciation and losses incurred by him in respect of the establishment for the previous accounting years have been fully set off against his profits.
Explanation III. – For the purpose of sub-section (1A), (1B) and (1C), sale of the goods produced or manufactured during the course of the trial running of any factory or of the prospecting stage of any mine or an oil field shall not be taken into consideration and where any question arises with regard to such production or manufacture, the decision of the appropriate Government, made after giving the parties a reasonable opportunity of representing the case, shall be final and shall not be called in question by any court or other authority.]
(2) The provisions of 1[sub-section (1), (1A), (1B) and (1C)] shall, so far as may be, apply to new departments or undertakings or branches set up by existing establishments:
Provided that if an employer in relation to an existing establishment consisting of different (departments or undertakings or branches (whether or not in the same industry) set up at different periods has, before the 29th May, 1965, been paying bonus to the employees of all; such departments or undertakings or branches, irrespective of the date on which such departments or undertakings or branches were set up, on the basis of the consolidated profits computed in respect of all such departments or undertaking or branches, then, such employer shall be liable to pay bonus in accordance with the provisions of this Act to the employees of all such departments or undertaking or branches (whether set up before or after that date) on the basis of the consolidated profits computed as aforesaid.
__________________________________________________ __________
Regards,
From India, Ahmadabad
Sorry I was unable to find the soft copy of the whole document but here is the section mentioning that...
It is Section 16 of the act,
__________________________________________________ _______
16. Special provisions with respect to certain establishment— 2[(1) Where an establishment newly set up, whether before or after the commencement of this Act, the employees of such establishment shall be entitled to be paid bonus under this Act in accordance with the provisions of sub-section (1A), (1B) and (1C).
(1A) 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.
(1B) For the sixth and seventh 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, the provisions of section 15 shall apply subject other following modifications, namely:--
(i) for the sixth accounting year --
set on or set off, as the case may be, shall be made in the manner illustrated in the 1[Fourth Schedule] taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth and sixth accounting years;
(ii) for the seventh accounting year --
set on or set off, as the case may be, shall be made in the manner illustrated in the 1[Fourth Schedule] taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth, sixth and seventh accounting year.
(1C) From the eighth 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, the provisions of section 15 shall apply in relation to such establishment as they apply in relation to any other establishment.
Explanation I. – For the purpose of sub-section (1), an establishment shall not be newly set up merely by reason of a change in its location, management, name or ownership.
Explanation II. -- For the purpose of sub-section (1A), an employer shall not be deemed to have derived profit in any accounting year unless –
(a) he has made provision for that year’s depreciation to which he is entitled under the Income-tax Act or, as the case may be, under the agricultural income-tax, law; and
(b) the arrears of such depreciation and losses incurred by him in respect of the establishment for the previous accounting years have been fully set off against his profits.
Explanation III. – For the purpose of sub-section (1A), (1B) and (1C), sale of the goods produced or manufactured during the course of the trial running of any factory or of the prospecting stage of any mine or an oil field shall not be taken into consideration and where any question arises with regard to such production or manufacture, the decision of the appropriate Government, made after giving the parties a reasonable opportunity of representing the case, shall be final and shall not be called in question by any court or other authority.]
(2) The provisions of 1[sub-section (1), (1A), (1B) and (1C)] shall, so far as may be, apply to new departments or undertakings or branches set up by existing establishments:
Provided that if an employer in relation to an existing establishment consisting of different (departments or undertakings or branches (whether or not in the same industry) set up at different periods has, before the 29th May, 1965, been paying bonus to the employees of all; such departments or undertakings or branches, irrespective of the date on which such departments or undertakings or branches were set up, on the basis of the consolidated profits computed in respect of all such departments or undertaking or branches, then, such employer shall be liable to pay bonus in accordance with the provisions of this Act to the employees of all such departments or undertaking or branches (whether set up before or after that date) on the basis of the consolidated profits computed as aforesaid.
__________________________________________________ __________
Regards,
From India, Ahmadabad
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