Payment Of Bonus Act-basic Or Gross Salary?? - DOC Download

There has been an amendment in payment of bonus act by an ordinance issued in 2007 which mandates an organisation to give bonus to employees drawing wages or salary upto rs. 10000.
1) Please let me know if the 'wages' or 'salary' reffered to in the act means basic salary or gross salary.
2) My friend is having a problem in getting his bonus because his company is saying the act refers to gross salary(and his is greater than 10000) while i have seen companies handing out bonus on basic salary.
3) Is there any govt. document my friend can show to his company to show that the act refers to basic salary.What can he do? please guide.
25th February 2008 From India, Chennai

For Bonus purpose - defination of salary/wages includes following factors and not only Basic+DA, so please be aware it is not counted only on Basic and DA.

21)

"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 of 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 travelling 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 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 Shailesh (Statutory Manager)
12th June 2008 From India, Bangalore

Dear All
Allthough the ceiling is 10000 and the payable amount is 35oo/- nowadays limited companies are adding bonus in the employees Cost to the Company to avoid the issues. Bonus minimum percentage is 8.33% and the maximum depends upon the Company's willing and the profit generated for the budget year. I think you have understood.
Thanks & Regards
B. RAVI MURUGAN
16th June 2008

Hi All,
Could any body tell me, tht ex employee will also eligible for this period. Suppose I worked for an organization from Nov 2005 to Jan 2008 and then joined new Organization in feb. So ex Organization will also give me the bonus or not
1st September 2008 From India, Bangalore

Yes. Your bonus due will have to be paid to you when your full and final settlement is given to you from your previous employer -Saravana Rajan
2nd September 2008 From India, Mumbai

I needed help.. Can any one share with me on What is bonus act? require hard copy of its RULES & REGULATION. waiting for all +ve response. Thanks, Vandana
10th October 2008 From India, Mumbai

Dear All,
I want to know What is the ceiling in Bonus Act 1965. If any employee geting salary more than ceiling then company have to give Bonus to that employee or not. Also tell me that ceiling is Basic salary / gross salary.
Regards,
P R Paliwal
13th January 2009 From India, Mumbai

Bonus is mendatory if the Salary is not above 10000 and will be calculated on Rs. 3500 (Min 8.33 to Max 20%)
But if your salary exceeds 10000 then it is on employer's will

Please check below section 21 of bonus ACT about the salary and Wages means under this act

“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.
Explanation. – Where an employee is given in lieu of the whole or part of the salary or wage payable to him, free food allowance or free food by his employer, such food allowance or the value of such food shall, for the purpose of this clause, be deemed to from part of the salary or wage of such employee;
14th January 2009 From India, Delhi

Dear, m sending mixture of all. It will help u. regards vipin
23rd February 2009 From India, New Delhi

Attached Files (Download Requires Membership)

PAYMENT OF BONUS ACT.doc (36.5 KB, 3148 views)

if a person worked only 28 days in a month during the yeay should we take 28 days of basic salary for that month fpr bonus calculation or we take the full month
8th June 2009 From India, New Delhi