Bonus entitlement
P Venu Gopal
(Querist) 19 October 2016
This query is : Resolved
Dear Learned Experts
I have a doubt on Payment of Bonus Act 1965/2015
Giving below my monthly salary slip details for the FY 2015-16
BASIC RS. 8925
HRA RS. 3570
CONVEYANCE RS. 1600
SPECIAL ALLOWANCES RS. 10155
MEDICAL ALLOWANCE RS. 1250
GROSS SALARY RS. 25500
Can you please guide me whether I am eligible for bonus under the Payment of Bonus Act 1965/201 or not.
If eligible, what is the amount of entitlement.
Our HR Head saying those whose gross salary crosses Rs. 21000, not eligible for bonus.
Few saying salary mean Basic + DA which few others saying all amounts to be clubbed.
I am unable to understand government department english definitions.
Hence, could you please guide
Thank you all
P V Gopal
Kumar Doab
(Expert) 19 October 2016
You have posted that:
"I have a doubt on Payment of Bonus Act 1965/2015"
In other way you are affirming that your establishment is covered by the Act.
Isn't it?
Kumar Doab
(Expert) 19 October 2016
You have posted that:
'Our HR Head saying those whose gross salary crosses Rs. 21000, not eligible for bonus.'
Saying,asking,telling,etc are all verbal mode and difficult to establish.
Is your HR willing to state so in writing?
Have you submitted any request in writing?
Kumar Doab
(Expert) 19 October 2016
If the Act applies your HR person seems to be wrong;
'For the purpose of calculation of bonus a salary or wage includes a basic salary or wage and dearness allowance but does not include other allowances, overtime salary or wage, house rent allowance, traveling concessions, bonus, employer's contribution to PF, retrenchment compensation, gratuity or commission etc etc …. Sec: 2(21) '
Employer should pay by 30th Nov to avoid penalty.
P Venu Gopal
(Querist) 19 October 2016
Sir, really thank you for your reply.
Unfortunately, all our HR team intellectuals. That is the main problem.
They don't know whether salary means to consider only basic and DA or to consider Gross.
Hence, my case posted here. If you confirm whether I have eligibility basing on the above head break up, I may ask them.
Once again thank you very much sir
P V Gopal
Rajendra K Goyal
(Expert) 19 October 2016
Agree with the advice from expert Kumar Doab.
Kumar Doab
(Expert) 19 October 2016
"Unfortunately, all our HR team intellectuals. That is the main problem.
They don't know whether salary means to consider only basic and DA or to consider Gross."
Regret: Such contentions are to be taken with a pinch of salt.
If a person is handling HR functions in a Dept. which has many HR personnel, such contentions are unacceptable.
Possibly you are too docile , and you are being taken for granted.
You should extract a written reply.
Anyway salary or wage that is taken for calculation of Bonus has already been posted in my last post.
Kumar Doab
(Expert) 20 October 2016
First thing First: Submit a gentle communique under proper acknowledgment.
Do not forget to mention that you have made representations and till date payment has not been made to you.
Rajendra K Goyal
(Expert) 20 October 2016
Author can proceed as guided by the expert Kumar Doab.
