Query - Bonus - Doc Download

Dear All,
Need one clarification related to recent amendment made in Bonus Act.
Ceiling increased from Rs. 2500 to 3500.
So do we need to calculate bonus now taking 3500????
Its urgent so plz clarify my doubts.
Rgds,
Shilpi
30th October 2007 From India, New Delhi

Hi Shilpi,
The eligibility limit for the Bonus has been raised from Rs 3500/- to Rs 10,000/- means all those employees earning basic of Rs upto 10,000/- will now be eligible to get Bonus.
The limit for the purpose of calculation of Bonus has been revised from Rs 2500/- to Rs 3500/- means bonus will now be calculated on Rs 3500/-
Hope things are clear to you.
Amit Goyal
30th October 2007 From India, Delhi

Hi Amit,
Need some clarification.
1.The limit of bonus is increased from Rs. 3500 to Rs. 10,000 effective from which date?
2. Eligibility criteria is "Earn Basic" of upto Rs. 10,000 or "Basic+DA" upto Rs. 10,000 as per the salary structure of the employees.
3. Those, whose "Basic+DA" is more than Rs. 3500, how to calculate their bonus( suppose the Basic+DA of an employee is Rs. 8000).
Thanking you in advance.
Surya
30th October 2007 From India, Pune

Hi Amit,
Thanks! amendments I know but I also came to know that their effective date is not yet announced atleast for Basic increasing to 10,000/-.
Now I want to calrify that for calculation purpose i should take 3500 or 2500/- amount as we are giving bonus in Diwali so its urgent.
Rgds,
Shilpi
30th October 2007 From India, New Delhi

Hi Shilpi,
This amendment is passed by the cabinet but not yet become an Act so as of now keep the wage ceiling as 3500/- for eligibility and 2500/- for the calculation.
Sorry for wrong reply earlier.
Regards,
Amit Goyal
31st October 2007 From India, Delhi

hello Guys,
Plz refer the link.
The amendment issigned yesterday by our honourable President.So this has been come in effect from April 2006 & applicable from last financial year.
http://pib.nic.in/release/release.asp?relid=32264
bharat.
31st October 2007 From Spain

Hi Here is the soft copy of the gazette on the latest amendment in Payment of Bonus Act. Thanks & Regards Kalyan R Mobile: 9840942232
31st October 2007 From India, Madras

Attached Files (Download Requires Membership)

bonus-amendment_206.doc (21.5 KB, 658 views)

Yes,
The amendment is applicable from April 2006.
Again 10000 means Basic+DA.
So if Basic+DA is more than 10000 you are not elegible for bonus.
Now the calculation:
If Basic+DA is more than 10000, not elegible :-((. (So lets take a test case of 9000 (Basic+DA)
The act says that bonus will be calculated on 3500. Therefore the calculation will be as follows for declaring 20% bonus:
(3500*20%)*12 (Bonus is given for the year).
Take Care: Act says eligibility for bonus is Rs 10000 but it will be calculated on 3500 (This is very important).
Again if the Basic+DA is less than or equal to 3500 then it will be calculated on actual Basic+DA i.e if lf Basic+DA is 3200, bonus will be calculated on 3200 only.
31st October 2007

As of now until the new amendment is inforced,
The eligibiolity citeria/upper ceiling for bonus is 3500/-
Calculation is to be made on 2500/-
**Exception any establishments which has not completed 5yrs are exmpted from paying the bonus. (still companies can pay concidering their financials)
Regards,
31st October 2007 From India, Ahmadabad

Dear All,
The amendment is applicable from April 2006. It has been signed by the President of India and has come into force.
Again 10000 means Basic+DA.
So if Basic+DA is more than 10000 you are not elegible for bonus.
Now the calculation:
If Basic+DA is more than 10000, not elegible (. (So lets take a test case of 9000 (Basic+DA)
The act says that bonus will be calculated on 3500. Therefore the calculation will be as follows for declaring 20% bonus:
(3500*20%)*12 (Bonus is given for the year).
Take Care: Act says eligibility for bonus is Rs 10000 but it will be calculated on 3500 (This is very important).
Again if the Basic+DA is less than or equal to 3500 then it will be calculated on actual Basic+DA i.e if lf Basic+DA is 3200, bonus will be calculated on 3200 only.
Regards,
Nilendra
31st October 2007