Dear seniors,
Once again need your valuable suggestions.
I am working with Bangalore based 7 years old IT company for 1.5 yrs
My joining date is 1st April 2015. As per the law I am eligible to get Annual bonus.
When I asked the same to HR, she said management has decided to announce it during Diwali.
So my question was to her what if the employ resigns before Diwali, will he/she be eligible for Bonus.
She answered No, they will not be.
Here is my question - is it in the hand of management to announce bonus anytime, whenever they want?
What about the employees who gets relieved before that?
Kindly suggest.
Thanks,
Neha
From India, Mumbai
2Once again need your valuable suggestions.
I am working with Bangalore based 7 years old IT company for 1.5 yrs
My joining date is 1st April 2015. As per the law I am eligible to get Annual bonus.
When I asked the same to HR, she said management has decided to announce it during Diwali.
So my question was to her what if the employ resigns before Diwali, will he/she be eligible for Bonus.
She answered No, they will not be.
Here is my question - is it in the hand of management to announce bonus anytime, whenever they want?
What about the employees who gets relieved before that?
Kindly suggest.
Thanks,
Neha
From India, Mumbai
Dear Neha
In general bonus for the last financial year (2015-2016) is being paid on Diwali or Dusserra.
As your DOJ is 01 April 2015 you are eligible for 1 year bonus even if you quit as part of FnF you are eligible 1 year as well as from 01 April 2016 to till the last day you are employed.
Bonus payable is as per the statutory & management is supposed to follow the bonus act
From India, Bangalore
In general bonus for the last financial year (2015-2016) is being paid on Diwali or Dusserra.
As your DOJ is 01 April 2015 you are eligible for 1 year bonus even if you quit as part of FnF you are eligible 1 year as well as from 01 April 2016 to till the last day you are employed.
Bonus payable is as per the statutory & management is supposed to follow the bonus act
From India, Bangalore
Hello..i m an Mba in human resouurce..and have qualified my ugc net in 2013 and haven't been able to work ..plz advise what i can do to either work from ho.e if there are any courses that can cover up my non working status for these 4yrs..how can i get a gud job..plz advise
From India, Siuri
From India, Siuri
The time limit for payment of bonus has been fixed in the Payment of Bonus Act,1965 itself. As per sec.20(b) of the PB Act, normally the bonus payable under the Act pertaining to an Accounting Year shall be paid in cash to the eligible employees within 8 months from the date of close of the accounts of such Accounting Year.
(1)Since the no of Companies adopting the Financial Year as Accounting Year under the Act is more in general, 8 months limitation ends up on November 30 and the festival of Deepavali also falls always during October- November months every year, the decisions on the quantum and disbursement of bonus due for the Accounting year are made either unilaterally or collectively just before the festival. It is a matter of sheer coincidence - that's all. So, declaration of bonus on a particular date is not a prerogative of the management; on the other hand disbursement of bonus before the expiry of the time limit is a statutory obligation on the part of the employer.
(2)Bonus for any AY is payable to all eligible employees worked in that AY other than those dismissed for the reasons mentioned in sec.9 of the Act whether or not that they are in the service of the employer on the date of declaration or disbursement of the bonus.
From India, Salem
(1)Since the no of Companies adopting the Financial Year as Accounting Year under the Act is more in general, 8 months limitation ends up on November 30 and the festival of Deepavali also falls always during October- November months every year, the decisions on the quantum and disbursement of bonus due for the Accounting year are made either unilaterally or collectively just before the festival. It is a matter of sheer coincidence - that's all. So, declaration of bonus on a particular date is not a prerogative of the management; on the other hand disbursement of bonus before the expiry of the time limit is a statutory obligation on the part of the employer.
(2)Bonus for any AY is payable to all eligible employees worked in that AY other than those dismissed for the reasons mentioned in sec.9 of the Act whether or not that they are in the service of the employer on the date of declaration or disbursement of the bonus.
From India, Salem
Umakanthan Sir,
You answered it correctly.
In Maharashtra, payment of bonus is to be made by cheque.
"As per sec.20(b) of the PB Act, NORMALLY the bonus payable under the Act pertaining to an Accounting Year shall be paid in cash to the eligible employees within 8 months from the date of close of the accounts of such Accounting Year."
Sir, why you mentioned NORMALLY in above statement?
From India, Mumbai
You answered it correctly.
In Maharashtra, payment of bonus is to be made by cheque.
"As per sec.20(b) of the PB Act, NORMALLY the bonus payable under the Act pertaining to an Accounting Year shall be paid in cash to the eligible employees within 8 months from the date of close of the accounts of such Accounting Year."
Sir, why you mentioned NORMALLY in above statement?
From India, Mumbai
Dear seniors, Thank you. It means even if the management doesn’t announce the bonus befoŕe diwali still the employee leaving before that wiĺl be eligible to get the bonus? Right?
From India, Mumbai
From India, Mumbai
Very correctly defined Bonus Act.
Any staff who has worked for atleast 1 month is eligible for bonus. Even if he/she is not working with the company during the time of bonus disbursement he/she is eligible.
Previously the bonus slab was Rs 3500/- which has been revised to Rs 7000/- or minimum wages whichever is higher in the year 2015. The bonus slab is for one year of service and it can be reduced with the reduced attendance/service.
In your case you are eligible Neha and if they do not pay tell them that you will drag them to the court of law. Management can announce any time on or before Nov 30 and the maximum is upto management. Minimum is as per the slab.
Hope your query is addressed !
From India, Kochi
Any staff who has worked for atleast 1 month is eligible for bonus. Even if he/she is not working with the company during the time of bonus disbursement he/she is eligible.
Previously the bonus slab was Rs 3500/- which has been revised to Rs 7000/- or minimum wages whichever is higher in the year 2015. The bonus slab is for one year of service and it can be reduced with the reduced attendance/service.
In your case you are eligible Neha and if they do not pay tell them that you will drag them to the court of law. Management can announce any time on or before Nov 30 and the maximum is upto management. Minimum is as per the slab.
Hope your query is addressed !
From India, Kochi
Before answering the query raised by the dear (anonymous)friend, I thank him/her for giving an opportunity to read my previous answer again and correct the indvertant mistake in that - the section prescribing the time limit for payment of bonus in the Payment of Bonus Act,1965 is sec.19(b) and NOT 20(b).
Coming to the query that why I used the word " normally " in the opening part of my answer is this:
(a) The term " Accounting Year" as defined in sec.2(1) of the Payment of Bonus Act,1965 relates to Accounting Years with different stretch of periods followed by different types of establishments according to their constitution viz., (i) Corporation (ii) company (iii) any other type having its commencement from 1st April or having any date other than 31st March as the day of closing and balancing of its accounts.
(b) Sec.19 of the Act prescribes time limits for payment of bonus in respect of two situations - the one in clause(a) is concerned with the dispute situation and the one in clause (b) is regarding any other case within a period of 8 months from the close of the Accounting Year.
That is why I used the qualifying term "normally" in my answer.
From India, Salem
Coming to the query that why I used the word " normally " in the opening part of my answer is this:
(a) The term " Accounting Year" as defined in sec.2(1) of the Payment of Bonus Act,1965 relates to Accounting Years with different stretch of periods followed by different types of establishments according to their constitution viz., (i) Corporation (ii) company (iii) any other type having its commencement from 1st April or having any date other than 31st March as the day of closing and balancing of its accounts.
(b) Sec.19 of the Act prescribes time limits for payment of bonus in respect of two situations - the one in clause(a) is concerned with the dispute situation and the one in clause (b) is regarding any other case within a period of 8 months from the close of the Accounting Year.
That is why I used the qualifying term "normally" in my answer.
From India, Salem
Umakanthan sir
i have doubt in bonus calculation...
suppose Mr. x has worked only 36 days and his earned wages is 10800 after 36 days working he leave the company plz let me know in this case how we will calculate bonus weather 10800*8.33 or 7000/26*36*8.33
pls answer with an example if possible
Thanks In Advance
From India, Basti
i have doubt in bonus calculation...
suppose Mr. x has worked only 36 days and his earned wages is 10800 after 36 days working he leave the company plz let me know in this case how we will calculate bonus weather 10800*8.33 or 7000/26*36*8.33
pls answer with an example if possible
Thanks In Advance
From India, Basti
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.
Annual Ethics Conference 2014 - Announcement I.pdf
Annual Return form 21 under F. act.doc
Sumary of Annual Leave--Sample.x ls