Per amendment to the Payment of Bonus Act 1965, all employees drawing a basic salary (Base Pay) of less than or equal to Rs.10,000/- per month are eligible for Bonus for the financial year 2006-2007.
The Act is applicable from April 1, 2006 which means that the Act is applicable for the Financial Year 2006 - 2007 (April 2006 to March 2007).
Per Bonus Act, minimum bonus payable is Rs.100/- and the maximum bonus payable is Rs.8400/-
The criteria involved for Bonus Calculation and payment for the financial year 2006-2007 (April 1, 2006 to March 31, 2007) is as follows:
· Employees joined on or before 28-Feb-2007 and whose Basic Salary (Base Salary) was less than or equal to Rs.10,000/-per month are covered under this Bonus payment.
· Bonus under the Act is calculated at 20% on actual basic salary (base pay) or Rs.3500/- per month, whichever is lower
· Bonus is pro-rated for the period the employee has served during the financial year 2006-2007
· Employee should have completed at least a minimum of 30 days during the financial year 2006-2007
Please note that Bonus Payment is as per Statutory requirement. This is not a performance bonus or performance linked Incentive
From India, Delhi
3The Act is applicable from April 1, 2006 which means that the Act is applicable for the Financial Year 2006 - 2007 (April 2006 to March 2007).
Per Bonus Act, minimum bonus payable is Rs.100/- and the maximum bonus payable is Rs.8400/-
The criteria involved for Bonus Calculation and payment for the financial year 2006-2007 (April 1, 2006 to March 31, 2007) is as follows:
· Employees joined on or before 28-Feb-2007 and whose Basic Salary (Base Salary) was less than or equal to Rs.10,000/-per month are covered under this Bonus payment.
· Bonus under the Act is calculated at 20% on actual basic salary (base pay) or Rs.3500/- per month, whichever is lower
· Bonus is pro-rated for the period the employee has served during the financial year 2006-2007
· Employee should have completed at least a minimum of 30 days during the financial year 2006-2007
Please note that Bonus Payment is as per Statutory requirement. This is not a performance bonus or performance linked Incentive
From India, Delhi
Thanks for the info. what is it for the financial year 2008-2009? and what if the basic is more than 10,000? are these people not eligible for the bonus? If so, why? :huh: Regards, Rama.
From India, Bangalore
From India, Bangalore
hello, pls let me know the maximum amount payable towards bonus for the year 2008-09 rgds leela
From India
From India
Hi Shilpa/Khola
I need one more clarification. I believe if the company is minimum of 5 years old then only Bonus act is applicable rite.
If the employees gross is above 10000/- then will it be rounded off 10000/-
Please clarify the same
Jeeva
From India, Bangalore
I need one more clarification. I believe if the company is minimum of 5 years old then only Bonus act is applicable rite.
If the employees gross is above 10000/- then will it be rounded off 10000/-
Please clarify the same
Jeeva
From India, Bangalore
Dear
This statement has been given keeping in view the provision of section 8 of the Payment of Bonus Act, 1965. According to this section 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.Thus if one does not join the establishment before 28th Feb then how he will be able to work for 30 working days.
Regards,
R.N.Khola
From India, Delhi
This statement has been given keeping in view the provision of section 8 of the Payment of Bonus Act, 1965. According to this section 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.Thus if one does not join the establishment before 28th Feb then how he will be able to work for 30 working days.
Regards,
R.N.Khola
From India, Delhi
Hi,
I also have the same question like Jeeva. There is a clause in the Bonus Act which is interpreted as follows:
"Any establishment which is newly set up is exempted from paying Bonus to its employees in the first five years. If however the employer gains profits in the first five years then he has to pay Bonus to its employees."
What exactly does this mean. Is this applicable for the Manufacting / Trading industries or also for the service industry.
From India, Mumbai
I also have the same question like Jeeva. There is a clause in the Bonus Act which is interpreted as follows:
"Any establishment which is newly set up is exempted from paying Bonus to its employees in the first five years. If however the employer gains profits in the first five years then he has to pay Bonus to its employees."
What exactly does this mean. Is this applicable for the Manufacting / Trading industries or also for the service industry.
From India, Mumbai
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The Payment Of Bonus Act 1965-Update-02- 01.01.16-Wage - 21K- Min Bons 7K-01.04.14.pdf