Payment of bonus
Harsh Katara
(Querist) 12 October 2016
This query is : Resolved
Hello experts,
I have query regarding recent amendment done in payment of bonus act that is increment of ceiling limit of salary from 10k to 21k for deciding eligibility. My current company is calculating ceiling limit of salary as basic and is paying bonus accordingly, further I was working earlier with another company since this amendment has been made effect. I drop them mail regarding same and they are telling me I am not eligible as they are calculating on CTC excluding variable allowance. Can someone please advise on this what is exact definition of salary under payment of bonus act? I have seen the defination but is not clearing the doubt as to what has to be included or excluded.
Thanks in advance.
Kumar Doab
(Expert) 12 October 2016
If you have gone thru the Act then you should not have had any doubt.
It is simple and clear:
The provisions of the Payment of Bonus (Amendment) Act, 2015 shall be deemed to have come into force on the 1st day of April, 2014.
http://pib.nic.in/newsite/PrintRelease.aspx?relid=134313
An employee who has worked for minimum period of 30 days in a year is entitled to be paid bonus. Sec: 2(13), 8.
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)
Minimum bonus: 8.33% of the salary or wage; Sec;10
Employer can offer better terms of payment.
If you are eligible claim the difference.
Send your full address with pin code and request tom send all communications by Redg. Post.
Rajendra K Goyal
(Expert) 12 October 2016
Well advised, you can proceed as advised by the expert Kumar Doab.
Rajendra K Goyal
(Expert) 12 October 2016
Well advised, you can proceed as advised by the expert Kumar Doab.
Kumar Doab
(Expert) 12 October 2016
Thanks for agreeing with me Expert Mr. Yogen Kakade.
Kumar Doab
(Expert) 12 October 2016
Thanks for agreeing with me Expert Mr. Rajendra K Goyal.
Kumar Doab
(Expert) 12 October 2016
Thanks for agreeing with me Expert Mr. Rajendra K Goyal.
Ms.Usha Kapoor
(Expert) 13 October 2016
I endorse the opinion given by Mr.Kumar Doab.
Harsh Katara
(Querist) 13 October 2016
Thank you Mr Doab for your prompt reply, really appreciable! Well I will be thankful to you if you can tell me whether I have interpreted the defination 0f salary properly under payment of bonus act:
1) Basic (included)
2) Conveyance (excluded)
3) HRA (excluded)
4) Medical (excluded)
5) Variable allowance (excluded)
6) Personal allowance (excluded)
7) Food coupon (excluded).
Also do i need to hire a professional lawyer or i can directly send registered notice demanding claim?
Kumar Doab
(Expert) 13 October 2016
It has already been posted from the Act;
"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............."
Kumar Doab
(Expert) 13 October 2016
You can send notice, or thru your counsel specializing in Labor/Service matters........
Your employee's/trade union may agree to support you.
Harsh Katara
(Querist) 13 October 2016
Again thanks Expert Kumar Doab. Well it is a well renowned indian MNC with more than 3lacs employes. Sir if you can help me this for consideration will be helpful to me and suggest me some contact. I can share all my details with you.
Kumar Doab
(Expert) 13 October 2016
Can only try. If possible.
You may share your details by PM.
Rajendra K Goyal
(Expert) 13 October 2016
Author can send personal message to expert Kumar Doab.
Click name of expert- his profile would open - click send PM, write message and send.
Kumar Doab
(Expert) 13 October 2016
Thanks for agreeing with me Expert Ms.Usha Kapoor.
