Bonus calculation and eligibility
Ranveer
(Querist) 24 September 2011
This query is : Resolved
Sir,
Can you let me know the calculation and eligibilty for bonus as per the act 1965.
Sailesh Kumar Shah
(Expert) 24 September 2011
For the purpose of calculation of bonus:-
salary or wage includes a basic salary or wage and dearness allowance but does not include other allowances, overtime salary or wage, house rent allowance, traveling concessions, bonus, employer's contribution to provident fund, retrenchment compensation, gratuity or commission.
Sailesh Kumar Shah
(Expert) 24 September 2011
Eligibility for bonus:-
Every employee who is drawing a salary or wage upto Rs. 10000.00 per month and who has worked for minimum period of 30 days in a year is entitled to be paid bonus
Ranveer
(Querist) 24 September 2011
It's really appreciative to get quick reply from you. Thank you sir.
last but not the least, can i know if a person has joined on 10.03.10,for which year will he be eligible for payment or receipt of bonus amount
Sankaranarayanan
(Expert) 24 September 2011
yes i agreed with mr shaileshkr but if any company under loss or sick then no need to pay bonus.
Basic salary amount is the figure to take for bonus calculation
Sankaranarayanan
(Expert) 24 September 2011
Every employee shall be entitled to be paid by his employer in an accounting year, bonus, in accordance with the provisions of this Act, provided he has worked in the establishment for not less than thirty working days in that year.
Sailesh Kumar Shah
(Expert) 24 September 2011
Section 8 relates to the eligibility for bonus. The only requirement of that section is that the employee should have worked in an establishment for not less than thirty working days in an accounting year.
Ranveer
(Querist) 24 September 2011
Thanks to all my respected sirs
Raj Kumar Makkad
(Expert) 24 September 2011
Apart from above said replies, I want to add that employer shall have to provide minimum 8.33% bonus every year.
H. S. Thukral
(Expert) 24 September 2011
Mr. Makkad is correct and my friend Mr. Sankarnarayanan is incorrect when he says that bonus can be denied if there is no profit for the establishment for the accounting year.
Ranveer
(Querist) 24 September 2011
Thanks a lot to all of you
