Dear DS, It is not basic. I wrongly mentioned "Basic up to Rs.10,000/-" It is gross not basic. Regards, Manas.
From India, Visakhapatnam
3From India, Visakhapatnam
Dear Meenakshi Ji,
You are 100% correct. From 6th & 7th year set on and set off is applicable. I wanted to say that bonus is a liability. If company is unable to generate profit although it has to pay.
According to 16 (1 B 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 2[ 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 res- pect of the fifth and sixth accounting years" -- means whatever excess or deficiency...we have to pay minimum bonus.
Am I correct ? Please advice.
Regards,
Manas.
From India, Visakhapatnam
You are 100% correct. From 6th & 7th year set on and set off is applicable. I wanted to say that bonus is a liability. If company is unable to generate profit although it has to pay.
According to 16 (1 B 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 2[ 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 res- pect of the fifth and sixth accounting years" -- means whatever excess or deficiency...we have to pay minimum bonus.
Am I correct ? Please advice.
Regards,
Manas.
From India, Visakhapatnam
Bonus comes under the statutory compliance and no relation with performance appraisal results, you have to pay bonus before expiring the 6 months of next financial year those are getting Rs.10K or <than 10K but on up to Rs.3500 (Earned basic x percentage = Bonus) (Rs.292 to Rs.700) @ rate of Minimum 8.33% and maximum up to 20% subject to Profit and Loss arise in your 6th Balance Sheet as exemption is only for 5 years and employee must have worked for minimum 30 days or > Rs.100 due to him during the financial year. If it is any type of Incentive paid by your company other than the statutory amount, may be linked to your performance appraisal systems/results.
Jagdish Yadav
Mussoorie Dehradun
9358147022
From India, Delhi
Jagdish Yadav
Mussoorie Dehradun
9358147022
From India, Delhi
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
Amendment to Payment of Bonus Act 2015.jpg
Employee Appraisal Form new.doc
Bonus act amendment gazette copy.pdf