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Bonus Act

Subodh ( ) (402 Points)

01 October 2008

Hello All,

Please let me know some basic on giving bonus to employee in IT/Service Industry. Is there compulsion for giving bonus if yes then what is the criteria and limit?

Waiting

Subodh

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9 Replies

CA V. Mohanakrishnan (Chartered Accountant) (401 Points)
Replied 01 October 2008

when is your company incorporated, this has implication on the criteria and limits for payment of bonus apart from other conditions and stipulations

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Subodh ( ) (402 Points)
Replied 01 October 2008

Dear Mr Krishnan

Our Company incorporated in April'2000, please solve the query as I am not aware of this Act.

(Guest)

Dear Sir,

Payment & Procedure of Bonus act.

you read my observation

Higher Bonus can paid @ 20% on ceiling of Rs.3500/- per month. Who employees getting Rs.10000/- per month, which employee covered in bonus act.

e.g. = If a employee getting Rs.9000/- per month, the calculation of bonus of above employee is to be calculated @ 20% on Rs.3500/- per month.

@ 20% on Rs.9000/-

who calculation is to be correct

please clear my observation

regards

ANUJ GARG

G. ARUN KUMAR (HR MANAGER) (0 Points)
Replied 27 November 2008

Dear sir,

I am arunkumar from vellore newly join in Hr department. pls help me hr activities and duties and filing maintenance and TDS and Sales tax and Service Tax. how to payable and filing details .

Thankingyou,

your's truly,

G. ARUN KUMAR MBA

Dilip (Consultancy) (23 Points)
Replied 12 December 2008

This is in reference to the Ex-gratia/Bonus payment with reference to the “THE PAYMENT OF BONUS ACT, 1965”. As per the point no. 8 of this act:

8. Eligibility for bonus.—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.

I have following query regarding the bonus payment:

A person X serves the company “A” from 01/04/2007 to 31/03/2008 and he left the company on 01/04/2008. The company “A” gives the ex-gratia bonus to its employees for the accounting year 2007-08 (01/04/2007 to 31/03/2008).

The question is: Will the person “X” eligible for the bonus for accounting year 2007-08 as he served from 01/04/2007 to 31/03/2008 and left company on 01/04/2008.