PAYMENT OF BONUS ABOVE Rs 10000/-

HC. Subbaramu Chamappa Hanagodu (HR & IR Consultant) 22 November 2010

The eligibility limit is Rs. 10000/. Persons drwaing more than this, as per Payment of Bonus Act,

do not have legal right to claim Bonus.

In many cases employers voluntarily do extend payment but call it ex-gratia for ineligible persons to upkeep high morale of its employees.

If the terms of contract in writing allow, then this could be calimed. However, normally no employer will commit such binding.

HC. Subbaramu

HR and Labour Law Consultant

Bangalore

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Kirti Kar Tripathi (lawyer) 22 November 2010

Dear Avinash. The payment of bonus other than the bonus payable under the PBA is ex-gratia payment and an employer cannot be compelled to make such payment. however, in case ex-gratia payment is made to every employee, then the employer can not deny the same to a particular employee. if the ex-gratia payment is made to the employee continuously without break, the employee have acquired customary rights.the same can be claimed.

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Avinash Kumar Sharma (Sr. Manager HR) 22 November 2010

Dear Sir,

Thanks a lot for your valuable advice.

Regards,

Avinash

sandip patil (Manager HR ) 24 November 2010

this is valueable infromation

ani (self employed) 24 November 2010

What if the salary is 11,000/- but in that the PF component and other allowances is amount to Rs. 2000/-

Will that person is elligible for Bonus?

Chander Mohan Badola (HR/IR manager) 18 December 2010

The eligibility limit is Rs. 10000/. , as per Payment of Bonus Act, this is basic or basic +HRA please clarify.

C.M Badola

Hr Manager

Kirti Kar Tripathi (lawyer) 18 December 2010

UNDER THE PBA THE SALARY / WAGES, IS DEFINED AS BELOW

(21) "Salary or wage" means all remuneration (other than remuneration in respect of overtime work) capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to an employment or of work done in such employment and includes dearness allowance (that is to say, all cash payments, by whatever name called, paid to an employee on account of a rise in the cost of living, but does not include -

(i) Any other allowance which the employee is for the time being entitled to ;

(ii) The value of any house accommodation or of such of light, water, medical attendance or other amenity or of any service of any confessional supply of food grains or other articles;

(iii) Any traveling concession ;

(iv) Any bonus (including incentive, production and attendance bonus) ;

(v) Any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the employees under any law for the time being in force ;

(vi) Any retrenchment compensation or any gratuity or other retirement benefit payable to the employees or any ex gratia payment made to him ;

(vii) Any commission payable to the employee.

(viii) Any commission payable to the employee.

Explanation - Where an employee is given in lieu of the whole or part of the salary or wage payable to him, free food allowance or free food by his employer, such food allowance or the value of such food shall, for the purpose of this clause, be deemed to form part of the salary or wage of such employees.

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DELHI EMPLOYER-1 (PARTNER) 24 August 2012

My company has been paying bonus (equal to one month's pay) to our employees for years now. We were not aware of the applicability of the bonus act. Only recently, we have come to know of it. The applicability that my new HR man has told me is pretty much the same as indicated earlier in this forum. 3500 upto 10000 and then nothing. I have about 80 ppl working for me, 50 below 10000 and 30 above but all are above 3500. The bonus payments which we have been giving have always been given as cheque payments and all workers have recd. a copy of their yearly vouchers which clearly describe this as bonus.

1) Can we suddenly stop giving out the bonus altogether for the ppl above 10000 and make it 3500 for those below 10000?

2) Can we get into legal labour court dispute for that? I can very much believe that there would be some resistance to taking such a step but I can negotiate with a better payhike that since my bonus payments coincide with the annual wage increments.

3) Can someone argue that since it was being given in the past, it needs to be continued in the future as well?

Pls reply, urgent.

Naresh Jaiswal (System Admin) 01 October 2014

Is there any latest amendment of Bonus Act regarding Salary and Wages limit.

praveen.bh 25 November 2015

Dear all,

My payment is 12000.When i asked for bonus my employer told that i am not eligible because bonus limit should be below 10000. My employer has given bonus for all my co workers except me.Thier payment is also more than 10000.When i ask my employer about how he has given bonus for others he tells thet he has not given all other workers bonus,he has given ex gratia.I have left the work since 5 months.Am i eligible for ex gratia or not?

THANKS AND REGARDS

PRAVEEN HARPANHALLI

praveen.bh 25 November 2015

Dear all,

My payment is 12000.When i asked for bonus my employer told that i am not eligible because bonus limit should be below 10000. My employer has given bonus for all my co workers except me.Thier payment is also more than 10000.When i ask my employer about how he has given bonus for others he tells thet he has not given all other workers bonus,he has given ex gratia.I have left the work since 5 months.Am i eligible for ex gratia or not?

THANKS AND REGARDS

PRAVEEN HARPANHALLI