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Statutory Bonus
#1
Good Morning Sir,

My query is regarding Statutory bonus paid to employees. I am not getting this term :

" It is statutory bonus which is paid to employees whose basic is less than or equal to Rs. 10,000. Minimum bonus payable is 8.33% of basic capped at rs 3500/- - i.e. Rs 292/- and Maximum 20% of Basic capped at Rs. 3500/-. Employer keeps it as part of CTC.

Please explain this.


Regards
Deepti Koranne
Regards
Team - HR SUCCESS TALK
 
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#2
Dear Deepti,

It means that any employee whose basic is less than or equal to 10,000 is only eligible for statutory bonus. Also employee who is eligible for statutory bonus, his bonus is calculated @ minimum 8.33% or maximum @ 20% of Basic depending upon profitability of company. But Basic should be capped at Rs 3500/-

Eg. if an employee's basic is 10100 then he will not be entitled for bonus.

If an employee's Basic is 3000 then he will be entitled for Bonus. In this case it will be minimum 8.33% of 3000 or maximum 20% of 3000.

If an employee's basic is 9000 then employee will be entitled for bonus. In this case his monthly bonus applicability will be minimum 8.33% of 3500 (capped on 3500) and maximum 20% of 3500


Bonus can be part of Employee CTC. It depends on Company's CTC structure.

Govind Singh Negi
HR Professional- Sr Management
Follow at twitter: @govindsinghneg3 https://twitter.com/govindsinghneg3
Catch on Facebook: http://www.facebook.com/pages/HR-Success...2717854041
 
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#3
(27-06-2013, 12:25 PM)govindsinghnegi Wrote: Dear Deepti,

It means that any employee whose basic is less than or equal to 10,000 is only eligible for statutory bonus. Also employee who is eligible for statutory bonus, his bonus is calculated @ minimum 8.33% or maximum @ 20% of Basic depending upon profitability of company. But Basic should be capped at Rs 3500/-

Eg. if an employee's basic is 10100 then he will not be entitled for bonus.

If an employee's Basic is 3000 then he will be entitled for Bonus. In this case it will be minimum 8.33% of 3000 or maximum 20% of 3000.

If an employee's basic is 9000 then employee will be entitled for bonus. In this case his monthly bonus applicability will be minimum 8.33% of 3500 (capped on 3500) and maximum 20% of 3500


Bonus can be part of Employee CTC. It depends on Company's CTC structure.

Hi

The Central Government has proposed raising the calculation of ceiling from Rs 3500 per month to Rs 7000 per month or the minimum wage for the scheduled employment, as fixed by the appropriate government, whichever is higher.

So on which amount bonus to be calculated in following cases:

When MW is less than 7000 & MW is more than 7000.

Thanks in advance.
 
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#4
It has no link with minimum wage. It depends upon Basic salary of an employee if it is less than Rs 7000 then bonus will be calculated on actual basic less maximum Rs 7000

Govind Singh Negi
HR Professional- Sr Management
Follow at twitter: @govindsinghneg3 https://twitter.com/govindsinghneg3
Catch on Facebook: http://www.facebook.com/pages/HR-Success...2717854041
 
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#5
(12-12-2015, 12:18 PM)govindsinghnegi Wrote: It has no link with minimum wage. It depends upon Basic salary of an employee if it is less than Rs 7000 then bonus will be calculated on actual basic less maximum Rs 7000

Thank you very much for response, I asked this question because in the bill they added condition for minimum wages.
 
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#6
Hi Vaibhav

Lets wait for final notification from government on this amendment

Govind Singh Negi
HR Professional- Sr Management
Follow at twitter: @govindsinghneg3 https://twitter.com/govindsinghneg3
Catch on Facebook: http://www.facebook.com/pages/HR-Success...2717854041
 
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#7
The bonus calculation has changed; we require two data - Basic Wage (Basic +DA) and min wages
Calculation will be 8.33% of Rs 7000, 8.33% of basic or 8.33% of min wages whichever is higher
Bonus is calculated for basic up-to Rs 20999
 
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#8
Hi Sir,

I have two queries:
1. Is payment of bonus to employees mandatory for a TV-media company?
2. Is there any act for payment of Ex-gratia ?

Regards
P Nath
 
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#9
Hi

Payment of Bonus act is applicable on TV Media too
There is a payment of Gratuity not Ex Gratia

Govind Singh Negi
HR Professional- Sr Management
Follow at twitter: @govindsinghneg3 https://twitter.com/govindsinghneg3
Catch on Facebook: http://www.facebook.com/pages/HR-Success...2717854041
 
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#10
Hi all
from which financial year the new Bonus amendment act effective ( Basic Rs 21,000/-& Calculation Rs 7,000/)



Regards,

Subba Rao
 
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