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Statutory Bonus = 8.33% Of Average Wages (Basic+ DA)*Present Days/ Working Days in a year Prashant
From India, Pune
From India, Pune
Hi Shiva,
In India the practice of paying bonus appears to have originated during First World War when certain textile mills granted 10% of wages as war bonus to their workers in 1917. A Tripartite Commission was set up by the Government of India to consider in a comprehensive manner, the question of payment of bonus based on profits to employees employed in establishments and to make recommendations to the Government. The Government of India accepted the recommendations of the Commission subject to certain modifications. To implement these recommendations the Payment of Bonus Ordinance, 1965 was promulgated on 29th May, 1965. To replace the said Ordinance the Payment of Bonus Bill was introduced in the Parliament.
Statutory Bonus means legal Bonus or Constitutional Bonus or Legally Authorized Bonus
Payment of Bonus act entitled as follows:
An Act to provide for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith.
Eligibility for bonus
Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
Disqualification for bonus
(a) fraud; or
(b) riotous or violent behaviour while on the premises of the establishment; or
(c) theft, misappropriation or sabotage of any property of the establishment.
Payment of minimum bonus
Minimum bonus paid by employer - 8.33% of ( Basic Wage + Dearness Allowance) * Number of Days Present in a Year / Number of working days in a year
Payment of Maximum Bonus
Maximum Bonus paid by employer - maximum 0f 20% and it varies
Time-limit for payment of bonus
within a period of eight months from the close of the accounting year
From India, Madras
In India the practice of paying bonus appears to have originated during First World War when certain textile mills granted 10% of wages as war bonus to their workers in 1917. A Tripartite Commission was set up by the Government of India to consider in a comprehensive manner, the question of payment of bonus based on profits to employees employed in establishments and to make recommendations to the Government. The Government of India accepted the recommendations of the Commission subject to certain modifications. To implement these recommendations the Payment of Bonus Ordinance, 1965 was promulgated on 29th May, 1965. To replace the said Ordinance the Payment of Bonus Bill was introduced in the Parliament.
Statutory Bonus means legal Bonus or Constitutional Bonus or Legally Authorized Bonus
Payment of Bonus act entitled as follows:
An Act to provide for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith.
Eligibility for bonus
Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
Disqualification for bonus
(a) fraud; or
(b) riotous or violent behaviour while on the premises of the establishment; or
(c) theft, misappropriation or sabotage of any property of the establishment.
Payment of minimum bonus
Minimum bonus paid by employer - 8.33% of ( Basic Wage + Dearness Allowance) * Number of Days Present in a Year / Number of working days in a year
Payment of Maximum Bonus
Maximum Bonus paid by employer - maximum 0f 20% and it varies
Time-limit for payment of bonus
within a period of eight months from the close of the accounting year
From India, Madras
Dear ,
Statutory bonus means applicable to:
1)every factory and
2)other establishement employ 20 or more persons and
3)if factory/organisation having losses for first five years then you have no need to pay it ,otherwise you have to pay it if organisation having profit,but
4) it is mandatory to pay bonus from sixth years from the set up of factory/organisation(either profit & loses occured continuously)
5)A person should worked in a organisation minimum 30 days in a year.
6)salary ranges according to Bonus act.
All above scenario are called statutory bonus as per Bonus act 1965.
I think you got your answer about calculation form the above messages:
Minimum 8.33% of your earning wages(basic+DA) and it goes to maximum 20% of your earning wages(basic+DA).
please keep in mind of earning wages always and number of days present/number of worked in a year would be effect at the time of calculation.
Best Regards
Sajid
From India, Delhi
Statutory bonus means applicable to:
1)every factory and
2)other establishement employ 20 or more persons and
3)if factory/organisation having losses for first five years then you have no need to pay it ,otherwise you have to pay it if organisation having profit,but
4) it is mandatory to pay bonus from sixth years from the set up of factory/organisation(either profit & loses occured continuously)
5)A person should worked in a organisation minimum 30 days in a year.
6)salary ranges according to Bonus act.
All above scenario are called statutory bonus as per Bonus act 1965.
I think you got your answer about calculation form the above messages:
Minimum 8.33% of your earning wages(basic+DA) and it goes to maximum 20% of your earning wages(basic+DA).
please keep in mind of earning wages always and number of days present/number of worked in a year would be effect at the time of calculation.
Best Regards
Sajid
From India, Delhi
Dear hr.siva
let me just add......... statutory bonus payable to those drawing a salary of maximum Rs.10000/- per month.
Since the ceiling for calculation of bonus is Rs.3500/-, for those whose salary is bet Rs.3500/- to Rs.10000/-, salary for the purpose of calculation of bonus will be Rs.3500/-.
And for those whose salary is lesser than Rs.3500/-, it will be on actual.
regards
N R M
From India, Bangalore
let me just add......... statutory bonus payable to those drawing a salary of maximum Rs.10000/- per month.
Since the ceiling for calculation of bonus is Rs.3500/-, for those whose salary is bet Rs.3500/- to Rs.10000/-, salary for the purpose of calculation of bonus will be Rs.3500/-.
And for those whose salary is lesser than Rs.3500/-, it will be on actual.
regards
N R M
From India, Bangalore
Dear
Amendment to the payment of Bonus Act,1965 which are as follows:-
>Amendment to Scection 2(13): to raise the eligibility limit for payment of bonus from the salary or wage of Rs.3500/- to Rs.10,000 per month.
>Amendment to section 12: To raise the ceiling for calculation purpose from the salary or wages of Rs.2500/- to Rs 3500/- per month and
>Deletion of section 32(vi): To cover the employees employed through contractors on building operation.
Regards
Bhupendra Singh
M-09825062156
From United States, Lynchburg
Amendment to the Payment of Bonus Act,1965
:icon1:Amendment to the payment of Bonus Act,1965 which are as follows:-
>Amendment to Scection 2(13): to raise the eligibility limit for payment of bonus from the salary or wage of Rs.3500/- to Rs.10,000 per month.
>Amendment to section 12: To raise the ceiling for calculation purpose from the salary or wages of Rs.2500/- to Rs 3500/- per month and
>Deletion of section 32(vi): To cover the employees employed through contractors on building operation.
Regards
Bhupendra Singh
M-09825062156
From United States, Lynchburg
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