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Payment of Statutory Bonus
Human Resources » Compensation & Benefits


Chrm Message From: paulthomas Total Posts: 43 Join Date: 05/08/2006
Rank: Executive Post Date: 15/10/2009 05:59:57 Points: 215 Location: --

Dear all,

Please share information on how statutory bonus has to be paid and to what percent ?

Thanks

Paul

 

Chrm Message From: ashishah Total Posts: 24 Join Date: 05/08/2006  
Rank: Executive Post Date: 15/10/2009 06:03:40 Points: 120 Location: --

Dear paul,

Under the provisions of the Payment of Bonus Act, 1965 (hereafter referred to as Act) and consequent to the amendment of the wage ceiling notified in October 2006, all permanent employees who are on the rolls of the company and drawing Basic Salary less than or equal to Rs. 10,000/- per month become eligible for receiving the statutory bonus, as per ceiling.

The payment of statutory bonus should be at the rate of 8.33% (as mandated by the Act) of the annual basic salary as provided under the Act should be given. All permanent employees whose Basic Salary is greater than Rs. 3,500/- and less than or equal to Rs. 10,000/- per month should be paid bonus as if their Basic Salary is equivalent to Rs. 3,500/-.

Employees whose Basic Salary is less than Rs. 3,500/- per month should be paid at the actual value of Basic Salary.

Regards

Ashish

Chrm Message From: savi989 Total Posts: 70 Join Date: 05/08/2006  
Rank: Manager Post Date: 15/10/2009 09:12:01 Points: 350 Location: --

Dear Paul,

According to payment of bonus act 1956 all the confirmed employees whose basis is less than or equal to 10000/- per month is eligible for statutory bonus @ rate of 8.33% of Basic pay.

For Basic of Rs 3500/- to Rs 10,000/- pm bonus of Rs 700/- per month is payable (considering base salary as rs 3500/-)

For Basic less than Rs 3500/- pm bonus of 8.33% of basic is payable 

Regards, Savita

 

Chrm Message From: mc_anup Total Posts: 1 Join Date: 05/08/2006  
Rank: Beginner Post Date: 02/09/2010 13:03:47 Points: 5 Location: --

Hi,

More than a reply, I have a query on the existing response. When you say basic, is it only the actual basic, or would it be held as a total of Basic+DA/City/Special Allowance.

Regards,

Anup

Chrm Message From: savi989 Total Posts: 70 Join Date: 05/08/2006  
Rank: Manager Post Date: 06/09/2010 00:38:14 Points: 350 Location: --

basic salary is only considered for calculation of payment of bonus.

Regards,Savita

 
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