manishvansh1 (n/a) 11 July 2008

disbursment of bonus

Dear Friends,

How we can calculate production bonus and can we disburse that bonus on monthly basis. if yes than what type of records we have to mantain for audit for govt. officers.

thanks
Manish Sharma

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3 Replies

Saravana Rajan 14 July 2008

Production bonus is administered by the company policy whereas statutory bonus is governed by payment of bonus act.

1. Based on standard maximum productivity, considering the productivity of individual worker / employee, it can be computed. It can be group bonus also in case if a particular task is performed by a group of individuals collectively and bonus can be shared among themselves.

2. A register with complete details of those who are paid such bonus needs to be maintained. Cash payment vouchers etc needs to be maintained for audit purposes.

3. There will not be any reservations for disbursing the same monthly.

BUT PLS CHECK IF THERE ARE ANY CEILING LIMITS FOR SUCH BONUS.

Rgds,

Saravana Rajan.

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 30 July 2008

The maximum Bonus is prescribed in section 11 of the Bonus Act. (A) Section 11 imposes a restriction to pay the bonus to a maximum of 20% of the salary or wage of the ployees during the accounting year, if there is sufficient allocable surplus. (B) This maximum bonus shall be paid to the employees in proportion to their salary or wages.