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PBS KUMAR (HR - PROFESSIONAL)     21 October 2010

RESIGNED & LEFT SERVICE EMPLOYEES BONUS

Dear Experts,

While declaring the Bonus for the employee for the particular financial (Ex.2009-10), the act says that the employees working not less that 30 days in that particular financial year will be eligible for Bonus. If in that particular year the Resigned and Left Service employee who serves more than 30 days are eligible or not ?

PLEASE CLARIFY MOST URGENT.

Regards,

PBS KUMAR

 



Learning

 12 Replies

Prakash Yedhula (Lawyer)     21 October 2010

 

In accordance with the provisions of Section 2(13) of the Payment of Bonus Act, 1965 any person other than an apprentice employed on a salary or wage not exceeding Rs.10,000 (by notification dated 15th Nov. 2007) per mensem in any industry to do any skilled or unskilled, manual, supervisory, managerial, administrative, technical or clerical work for hire or reward whether the terms of employment be express or implied is eligible for bonus. Further, in accordance with the provisions of Section 8 of the Payment of Bonus Act, 1965 every employee of an establishment covered under the Act 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 than Rs.10,000 per month.

Hence the left and resigned employees who served more than 30 days are entitled to bonus.

1 Like

appanna (Production Head)     21 October 2010

Dear Expert,

 

Kindly inform whether an employee who has resigned is eligible for bonus.

Prakash Yedhula (Lawyer)     22 October 2010

In case the employees have their Basic+DA less than or equal to Rs.10000 and have also worked for more than 30 days in a financial year then you will have to give them bonus for that financial year even if they now cease to be employees of your organization.


The rationale is that those who have ceased to be your employees now, were employees of your organization for a part of that financial year for which they are entitled to claim bonus. Y
ou cannot deny them bonus as they are statutorily eligible to receive the same.

 

In case of employees receiving more than 10000/-, you need to check up with their offer/appointment letter containing the terms of payment.

 

1 Like

narinder shukla (practice)     22 October 2010

yes , he is entitled to get the bonus but he should have worked with the organisation atleast minimum 30 days in that  financeial year and his salary is less than rs.10000/- p.m.

 

dr.narinder shukla

adocate 

deepak johari (consultant)     24 October 2010

working of 30 days &not gatting less than rs-100/-

PBS KUMAR (HR - PROFESSIONAL)     25 October 2010

Dear Experts,

If an employee worked in a perticular year i.e. from 01st April, to 31st March with 262 days and his annual gross salary is Rs.57534/-  in that case what is his eligible Bonus ?

Regards,

PBS KUMAR

narinder shukla (practice)     25 October 2010

yes , that employee is entitile to get the bonus. but for calculation purpose you need total of  basic + Da which you earned during the year  ( In your case 262 days) . if  the annual basic + DA is 57534/- (As you mentiond here) then the bonus amount woul be Rs. 4793/-

Dr.Narinder Shukla

Advocate

PBS KUMAR (HR - PROFESSIONAL)     28 October 2010

Dear Experts,

Some more doubts on Bonus Please clarify:

Maximum salary :

Maximum salary Employees drawing salary upto Rs. 10000/- are eligible for Bonus. But their salary will be limited to Rs. 3500/- for the purpose of Bonus. Is correct ?
 

Max and Min Bonus :

Max and Min Bonus Maximum of 20% and Minimum of 8.33% of the Salary/ Wages. Maximum amount of Bonus is limited to Rs.84000/- (3500x12x20/100) Is it correct ?

Regards,

PBS KUMAR

SS (VP)     31 October 2010

Dear Experts,

One of my friends have a case as below

The basic was about Rs. 40k PM in the executive cadre in a private construction firm  In the salary revision letter in Jun 2008, a payment under BONUS was 1 month's gross salary (Rs. 88k) (as per company policy is also mentioned).  The bonus for 2008-09 (payable in FY 2009-10 was not paid.  No revision took place until June 2010 after that.  Further for 2009-10 payable in FY 2010-11 may also not be paid. In that case, it is the liability of the company to pay the amount as it was shown as a fixed payment and committed byy the company.  This claim falls under what category?

M frind has now left the company and working elsewhere. Can this amount be claimed? If yes how to proceed?  Please advice.

Thanks,

chandrasekkar c k (advocate)     31 October 2010

why not ? if an employee had worked for more than 30 days in an accounting year and left the service he/she will be paid bonus, but proportionate to their service

Rashmita Saikia (Lawyer)     03 November 2010

Dear friends,


Please cllerify whether the Payment of Bonus Act covers the resigned emplyees or not?

Because, as soon as an employee resigns, he will not be in  the purview of employee right?

Abhay Kumar Sethia (CA)     22 May 2018

Dear Sir,

I was working with a Partners ship firm from 18.7.17 to 21.3.18 with starting salary of 20000 and revised salery 25000 from the Nov 2017.

There is nathing provided in the appiontment letter about the bonus.

The important fact is that while we are calculating the TDS on salary We are taking 8.33% of last year pay as bouus for each and every employee.

Then please tell me Am I elegible for bonus?

 


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