Two different bonus rate
Querist :
Anonymous
(Querist) 21 October 2011
This query is : Resolved
Dear Experts,
Is it legal to pay two different rates of Statutory Bonus for Continuing employees & left employee ?
ajay sethi
(Expert) 21 October 2011
why has employee left? has he been dismissed form service
Every employee of an establishment covered under the Payment of Bonus Act, 1965 is entitled to bonus from his employer
in an accounting year provided he has worked in that establishment for not less than thirty working days in the year on a
salary less that Rs. 3,500 per month. [Section 2(13) and Section 8] (Note: This amount has been revised to Rs. 10,000
An employee dismissed on the ground of misconduct is disqualified for any; bonus. [Pandian Roadways Corporation
Ltd. Vs. Presiding Officer (1996)]
A temporary workman is entitled to bonus on the basis of the total number of days worked by him.
Querist :
Anonymous
(Querist) 21 October 2011
Dear Sir,
The said employee had resigned from services.
ajay sethi
(Expert) 21 October 2011
As per proviso of Section 2(13) of The Payment of Bonus Act, 1965 an employee means only
person on a salary or wage not exceeding ten thousand rupees per month.
Further, Section 8 provides that an employee to be entitled for bonus in the accounting year
should have worked in the establishment for not less than thirty working days in that year.
Thus, in view of the above if A has resigned is not entitled for Bonus, as he has not worked for 30 days
in the accounting year.
Question 2
Querist :
Anonymous
(Querist) 21 October 2011
Dear Experts,
My query is employer paying to 20% bonus to those who are continuing with him.
He is paying 8.33 % to those who have left the organization.
Is isn't is illegal that for the same finanial year different rates for Statutory Bonus as per Bonus Act?
Sailesh Kumar Shah
(Expert) 21 October 2011
It seems that you are right but come with full facts i.e. salary amount.
Raj Kumar Makkad
(Expert) 21 October 2011
8.33% Bonus is mandatory to be paid to employees by institution but in your case employer is adopting double standard viz. 20% for presently working workers and statutory bonus of 8.33% for resigned workers.
As clarified above, this is not a liability of employer to pay bonus to resigned workers so if he is paying 8.33%, it is a gift of Diwali for those ex-employees from their ex, employer. There is no legal right of such employees to claim for bonus so be satisfied what has been granted.
Querist :
Anonymous
(Querist) 21 October 2011
Dear Makkad Saab,
The statutory bonus is paid from e.g.
April - 10 to March -11 so employer has to disburse bonus within 8 moth from closing of financial year i.e. March -11, if any employee resigned in Sept- 11
Employer is giving this employee as 8.33% & other continuing employees 20%
Is't this illegal?
