Please tell me the how much maximum amount of a bonus, as per bonus act a person can take. It’s 20% on CTC, but i need the maximum amount. Pls suggest. Regards, Archana
From India, Mumbai
2From India, Mumbai
Kindly click on the following link, it will give you some required information,
https://www.citehr.com/search_new.ph...act+&submit=Go
From India, Coimbatore
https://www.citehr.com/search_new.ph...act+&submit=Go
From India, Coimbatore
Hello,
You know the following basics:
1) The Payment of Bonus Act 1965 covers employees who draw wages/salaries upto and including Rs. 3500/- per month (including just Basic+D.A.)
2) The Bonus under the Act (derived by the formula and rules provided under it is paid as the following position.
a) Upto a basic+DA of Rs. 2500/- p.m. on the actual wage/salary drawn by the person during the relevant period.
b) Between Rs. 2500/- and Rs. 3500/- the derived bonus will be paid as though the the wage/slary was Rs. 3500/- p.m. and
c) For wage/salary above Rs. 3500/- p.m. the person is beyond the scope of the Act.
3) Therefore maximum bonus that can be paid in the present situation is Rs. 6000/- for the year.
4) You may also like to know that Bonus under law is payable to any and every employee (temporary, permanent etc.) who has worked for a minimum period of 30 days during the particular year.
5) What the company does BEYOND the provisions of the Act, is neither supported by the Act nor is required by it!
Finally, presently a proposal is under government's consideration to raise upwards the coverage limit of Rs. 3500/- per month. It may go upto Rs. 7500/- p.m. or Rs. 10000/- p.m.
But one thing is CLEAR that the Act does NOT mandate payment of Bonus on CTC at all.
I trust your queries stand resolved.
Regards
samvedan
August 9, 2007
From India, Pune
You know the following basics:
1) The Payment of Bonus Act 1965 covers employees who draw wages/salaries upto and including Rs. 3500/- per month (including just Basic+D.A.)
2) The Bonus under the Act (derived by the formula and rules provided under it is paid as the following position.
a) Upto a basic+DA of Rs. 2500/- p.m. on the actual wage/salary drawn by the person during the relevant period.
b) Between Rs. 2500/- and Rs. 3500/- the derived bonus will be paid as though the the wage/slary was Rs. 3500/- p.m. and
c) For wage/salary above Rs. 3500/- p.m. the person is beyond the scope of the Act.
3) Therefore maximum bonus that can be paid in the present situation is Rs. 6000/- for the year.
4) You may also like to know that Bonus under law is payable to any and every employee (temporary, permanent etc.) who has worked for a minimum period of 30 days during the particular year.
5) What the company does BEYOND the provisions of the Act, is neither supported by the Act nor is required by it!
Finally, presently a proposal is under government's consideration to raise upwards the coverage limit of Rs. 3500/- per month. It may go upto Rs. 7500/- p.m. or Rs. 10000/- p.m.
But one thing is CLEAR that the Act does NOT mandate payment of Bonus on CTC at all.
I trust your queries stand resolved.
Regards
samvedan
August 9, 2007
From India, Pune
wHAT S THE MAXIMUM SEALING AMOUNT OF BONUS IS THERE ANY RULES OR ACT IS THERE FOR THE SAME, PLEASE HELP A.V.PRAKASH
From India
From India
Dear Prakash,
Payment of Bonus Act 1965 describes the payment of maximum of bonus is 20% of wage & Minimum bonus is 8.33% of wage. it was clarify in sections as follows:
Sec-10 : Minimum Bonus - 8.33% of wage
Sec-11: Maximum Bonus - 20% of wage
As per ammendment for Payment of Bonus act on 27th October 2007 Sec-12 (Caliculation of bonus means wage describes 3500/-)
and Sec-2 clause 13 definition of "employee" means any person (other than an apprentice) employed on salary or wage not exeeding 10,000/- per mensem.
example:
Mr.A earns a wage of 8500/- (Basic) per month and allowances 1000/- he will get the bonus as follows:
if bonus rate fixed to employee as 20% :
Bonus = 3500 X 12 X 20% = 8400/-
Exgratia = 5000 X 12 X 20% = 12,000/-
Total = 20,400/-
if bonus rate fixed to employee as 8.33% :
Bonus = 8500 X 12 X 8.33% = 8400+96/- we can show in calculation as
as Bonus =8400 + Exgratia = 96/-
Total = 8,496/-
You may clarify the doubt in payment of Bonus.
Tks,
Jagan
(
)
9903599794
From India, Visakhapatnam
Payment of Bonus Act 1965 describes the payment of maximum of bonus is 20% of wage & Minimum bonus is 8.33% of wage. it was clarify in sections as follows:
Sec-10 : Minimum Bonus - 8.33% of wage
Sec-11: Maximum Bonus - 20% of wage
As per ammendment for Payment of Bonus act on 27th October 2007 Sec-12 (Caliculation of bonus means wage describes 3500/-)
and Sec-2 clause 13 definition of "employee" means any person (other than an apprentice) employed on salary or wage not exeeding 10,000/- per mensem.
example:
Mr.A earns a wage of 8500/- (Basic) per month and allowances 1000/- he will get the bonus as follows:
if bonus rate fixed to employee as 20% :
Bonus = 3500 X 12 X 20% = 8400/-
Exgratia = 5000 X 12 X 20% = 12,000/-
Total = 20,400/-
if bonus rate fixed to employee as 8.33% :
Bonus = 8500 X 12 X 8.33% = 8400+96/- we can show in calculation as
as Bonus =8400 + Exgratia = 96/-
Total = 8,496/-
You may clarify the doubt in payment of Bonus.
Tks,
Jagan
(
9903599794
From India, Visakhapatnam
Dear Prakash,
Payment of Bonus Act 1965 describes the payment of maximum of bonus is 20% of wage & Minimum bonus is 8.33% of wage. it was clarify in sections as follows:
Sec-10 : Minimum Bonus - 8.33% of wage
Sec-11: Maximum Bonus - 20% of wage
As per ammendment for Payment of Bonus act on 27th October 2007 Sec-12 (Caliculation of bonus means wage describes 3500/-)
and Sec-2 clause 13 definition of "employee" means any person (other than an apprentice) employed on salary or wage not exeeding 10,000/- per mensem.
example:
Mr.A earns a wage of 8500/- (Basic) per month and allowances 1000/- he will get the bonus as follows:
If Basic+DA is less than 10,000/- then for calculation of Bonus it will be taken as 3500/- only.
if bonus rate fixed to employee as 20% :
Bonus = 3500 X 12 X 20% = 8400/-
Exgratia = 5000 X 12 X 20% = 12,000/-
Total = 20,400/-
if bonus rate fixed to employee as 8.33% :
Bonus = 8500 X 12 X 8.33% = 8400+96/- we can show in calculation as
as Bonus =8400 + Exgratia = 96/-
Total = 8,496/-
You may clarify the doubt in payment of Bonus.
Tks,
Jagan
([IMG]https://www.citehr.com/misc.php?do=email_dev&email=amFnYW52aXphZ0B5YWhvby 5jb20=[/IMG])
9903599794[/quote]
From India, Hyderabad
Payment of Bonus Act 1965 describes the payment of maximum of bonus is 20% of wage & Minimum bonus is 8.33% of wage. it was clarify in sections as follows:
Sec-10 : Minimum Bonus - 8.33% of wage
Sec-11: Maximum Bonus - 20% of wage
As per ammendment for Payment of Bonus act on 27th October 2007 Sec-12 (Caliculation of bonus means wage describes 3500/-)
and Sec-2 clause 13 definition of "employee" means any person (other than an apprentice) employed on salary or wage not exeeding 10,000/- per mensem.
example:
Mr.A earns a wage of 8500/- (Basic) per month and allowances 1000/- he will get the bonus as follows:
If Basic+DA is less than 10,000/- then for calculation of Bonus it will be taken as 3500/- only.
if bonus rate fixed to employee as 20% :
Bonus = 3500 X 12 X 20% = 8400/-
Exgratia = 5000 X 12 X 20% = 12,000/-
Total = 20,400/-
if bonus rate fixed to employee as 8.33% :
Bonus = 8500 X 12 X 8.33% = 8400+96/- we can show in calculation as
as Bonus =8400 + Exgratia = 96/-
Total = 8,496/-
You may clarify the doubt in payment of Bonus.
Tks,
Jagan
([IMG]https://www.citehr.com/misc.php?do=email_dev&email=amFnYW52aXphZ0B5YWhvby 5jb20=[/IMG])
9903599794[/quote]
From India, Hyderabad
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