Can anyone let me know the concept of employee bonus calculation - What is the statutory bonus to be paid to all employees per companies act?
Also let me know the different types of bonus calculation which can satisfy the employee and the company?
What is the best way to calculate bonus in the current BPO's and IT sectors?
From India, Madras
1Also let me know the different types of bonus calculation which can satisfy the employee and the company?
What is the best way to calculate bonus in the current BPO's and IT sectors?
From India, Madras
Dear Srin
Please find attached the ppt on bonus.
AMENDMENT TO THE PAYMENT OF BONUS ACT, 1965
The Cabinet in its meeting held on October 1, 2007 has approved the Amendments to the payment of Bonus Act, 1965, which are as follows:-
i) Amendment to Section 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.
ii) Amendment to section 12: To raise the ceiling for calculation purpose from the salary or wage of Rs.2500/- to Rs.3500/- per month, and;
iii) Deletion of section 32(vi): To cover the employees employed through contractors on building operations .
Thus the employees, including those employed through contractors on building operations will be entitled to receive bonus as per the revised ceilings, for the year 2006-07 and onwards.
From India, Kota
Please find attached the ppt on bonus.
AMENDMENT TO THE PAYMENT OF BONUS ACT, 1965
The Cabinet in its meeting held on October 1, 2007 has approved the Amendments to the payment of Bonus Act, 1965, which are as follows:-
i) Amendment to Section 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.
ii) Amendment to section 12: To raise the ceiling for calculation purpose from the salary or wage of Rs.2500/- to Rs.3500/- per month, and;
iii) Deletion of section 32(vi): To cover the employees employed through contractors on building operations .
Thus the employees, including those employed through contractors on building operations will be entitled to receive bonus as per the revised ceilings, for the year 2006-07 and onwards.
From India, Kota
Hi,
Bonus is payable as per the act at the rates specified therein and as below:
1. Any employee who draws salary/wage (Basic+DA) less than Rs. 10000/- per month will now due to this amendment be covered as an employee under the Payment of Bonus Act 1965. (In past this limit was Rs. 3500/- per month (Basic+DA)
2. The percentage of bonus is a derived percentage from the method prescribed under the act (of calculating Gross Profit, Available Surplus and the Allocable Surplus and then the percentage of Bonus that can be paid.
3. The law stipulates that even when the company makes a loss, it is obliged to pay a bouns of 8.33% and whatever the profits the company cannot pay bonus exceeding 20% The first is called the Statutory Minimum Bonus and the other is called the statutory Maximum Bonus. Subject to other provisions of the act the percentage of bonus varies between these two levels.
4. The rule is that the calculated bonus is to be paid on the actual salary/wage (Basic+DA) upto (now) Rs. 3500/- (In past this limit was Rs. 2500/-) and the maximum salary/wage (Baisc+DA) on which bonus can be paid is Rs. 3500/- (In past this limit was Rs. 2500/-
5. Therefore if the calculated bonus was 20% then in past an employee drawing salary/wage between Rs. 2500/- and Rs. 3500/- per month would get Rs. 6000/- as Bonus (i.e. 2500*12*20%) and now he would get Rs. 8400/- under same conditions.
(i,e, 3500*12*20%)
Hope this would clear.
Anurag
From India, Jaipur
Bonus is payable as per the act at the rates specified therein and as below:
1. Any employee who draws salary/wage (Basic+DA) less than Rs. 10000/- per month will now due to this amendment be covered as an employee under the Payment of Bonus Act 1965. (In past this limit was Rs. 3500/- per month (Basic+DA)
2. The percentage of bonus is a derived percentage from the method prescribed under the act (of calculating Gross Profit, Available Surplus and the Allocable Surplus and then the percentage of Bonus that can be paid.
3. The law stipulates that even when the company makes a loss, it is obliged to pay a bouns of 8.33% and whatever the profits the company cannot pay bonus exceeding 20% The first is called the Statutory Minimum Bonus and the other is called the statutory Maximum Bonus. Subject to other provisions of the act the percentage of bonus varies between these two levels.
4. The rule is that the calculated bonus is to be paid on the actual salary/wage (Basic+DA) upto (now) Rs. 3500/- (In past this limit was Rs. 2500/-) and the maximum salary/wage (Baisc+DA) on which bonus can be paid is Rs. 3500/- (In past this limit was Rs. 2500/-
5. Therefore if the calculated bonus was 20% then in past an employee drawing salary/wage between Rs. 2500/- and Rs. 3500/- per month would get Rs. 6000/- as Bonus (i.e. 2500*12*20%) and now he would get Rs. 8400/- under same conditions.
(i,e, 3500*12*20%)
Hope this would clear.
Anurag
From India, Jaipur
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BONUS CALCULATION FOR W.B.Govt employee for 2010-2011.xls