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Dear Mr. Amit, Can you write your exact salary break up, so that your doubts can be clarified properly. .
From India, Patiala
From India, Patiala
Dear Amit,
Please find the definition of Salary / Wages under Payment of Bonus Act, please follow the same for Bonus purpose :
“salary or wage” means all remuneration (other than remuneration in respect of over-time work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment and includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living), but does not include-
(i) any other allowance which the employee is for the time being entitled to;
(ii) the value of any house accommodation or supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles;
(iii) any traveling concession;
(iv) any bonus (including incentive, production and attendance bonus);
(v) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the time being in force;
(vi) any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him;
(vii) any commission payable to the employee.
From United Arab Emirates, Dubai
Please find the definition of Salary / Wages under Payment of Bonus Act, please follow the same for Bonus purpose :
“salary or wage” means all remuneration (other than remuneration in respect of over-time work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employee in respect of his employment or of work done in such employment and includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living), but does not include-
(i) any other allowance which the employee is for the time being entitled to;
(ii) the value of any house accommodation or supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles;
(iii) any traveling concession;
(iv) any bonus (including incentive, production and attendance bonus);
(v) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employee under any law for the time being in force;
(vi) any retrenchment compensation or any gratuity or other retirement benefit payable to the employee or any ex gratia payment made to him;
(vii) any commission payable to the employee.
From United Arab Emirates, Dubai
Whoever is saying this statement that (Basic+ DA + Other allowances) for bonus eligibility Rs, 21k. Please share any GO or amendment notification to support it.
From India, Ghaziabad
From India, Ghaziabad
Dear Mazumdar ji,
In reference to your query, I wish to mention that Section 16 of the Payment of Bonus Act deals with the special provisions applicable to certain newly set up establishments. As per these provision, the first five accounting years following the accounting year in which bonus is payable only in respect of the accounting year, in which profits are derived.
If any organization did not made profit in 1st year in that case bonus shall not be paid, but if in the next year company makes profit in financial year, the organization has to pay Bonus as per Act. Again in next year, if the organization do not make profit then, bonus is not payable.( This is applicable only for first 5 years)… 6th year onwards, the bonus is payable, whether the organization makes profit is made or not.
First of all, you need to check whether the Act is applicable to your client company as mentioned in Section 1(3)(b) of the Act or not.
BS Kalsi
Member since August, 2011
From India, Mumbai
In reference to your query, I wish to mention that Section 16 of the Payment of Bonus Act deals with the special provisions applicable to certain newly set up establishments. As per these provision, the first five accounting years following the accounting year in which bonus is payable only in respect of the accounting year, in which profits are derived.
If any organization did not made profit in 1st year in that case bonus shall not be paid, but if in the next year company makes profit in financial year, the organization has to pay Bonus as per Act. Again in next year, if the organization do not make profit then, bonus is not payable.( This is applicable only for first 5 years)… 6th year onwards, the bonus is payable, whether the organization makes profit is made or not.
First of all, you need to check whether the Act is applicable to your client company as mentioned in Section 1(3)(b) of the Act or not.
BS Kalsi
Member since August, 2011
From India, Mumbai
Respected Mr. BS Kalsi Sir,
Thanks you for the input on my query.The client company is simply saying that the company is new and less than 5 Years, How do I know whether they made profit or not, while the company is established three years Back. Also the company is Engg. Pls Guide
From India, Vadodara
Thanks you for the input on my query.The client company is simply saying that the company is new and less than 5 Years, How do I know whether they made profit or not, while the company is established three years Back. Also the company is Engg. Pls Guide
From India, Vadodara
Dear Mazumdar ji,
You are right as a layman it is quite difficult to ascertain the assessment of the profitability of the company. Under Section 26 an employer is required to maintain the relevant registers and records etc. The inspectors appointed under the Act have been empowered under Section 27 to check whether the employers have complied with the provisions of the Act including examination of the accounts of the firm.
BS Kalsi,
Member Since August, 2011
From India, Mumbai
You are right as a layman it is quite difficult to ascertain the assessment of the profitability of the company. Under Section 26 an employer is required to maintain the relevant registers and records etc. The inspectors appointed under the Act have been empowered under Section 27 to check whether the employers have complied with the provisions of the Act including examination of the accounts of the firm.
BS Kalsi,
Member Since August, 2011
From India, Mumbai
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