Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


Discussion > Accounts > Others >

What is the Max. Limit of Bonus in Pvt. Ltd. Co.

    Post New Topic
Pages : 1





Asst. Manager- Financial Control

[ Scorecard : 41]
Posted On 02 October 2009 at 16:04 Report Abuse

Dear All

hi I am working in one MNC , and as per our company rule our Max Bonus Limit is Rs. 8,400/- it is less than 50% of our one Salary my all staff is unhappy pl any one sagest me what is the Max limit of bonus as per Bones Act


Online classes for CA CS CMA



BHAGYESH RAVANGE
C.A Job

[ Scorecard : 1528]
Posted On 02 October 2009 at 16:55

If in any accounting year , the allocable surplus exceeds the amount of minimum bonus payable to the employees then the employee during the accounting year subject to a maximum of twenty per cent, of such salary or wage





BHAGYESH RAVANGE
C.A Job

[ Scorecard : 1528]
Posted On 02 October 2009 at 16:59

If your monthly salary is 8400, then the yearly salary would be (8400*12) 100800, then your minimum bonus would be 8.33% of the 100800 which would be around 8400, so your company is giving you minimum bonus not the maximum bonus.




Member (Account Deleted)
AFM

[ Scorecard : 1437]
Posted On 30 November 2009 at 13:00

According to Act,

'

[10. Payment of minimum bonus.—Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 8.33 per cent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year:
        
         Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year, the provisions of this section shall have effecting relation to such employee as if for the words “one hundred rupees”,  the words “sixty rupees” were substituted.]
 
[11. Payment of maximum bonus.—(1) Where in respect of any accounting year referred to in section 10, the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting; year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent, of such salary or wage.
 
(2)    In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section 15 shall be taken into account in accordance with the provisions of that section.]"
 
Otherwise, Mr. Bhagyesh is correct!



CA Rahul Jain
CA

[ Scorecard : 1077]
Posted On 30 November 2009 at 15:42

Originally posted by :BHAGYESH RAVANGE
" If in any accounting year , the allocable surplus exceeds the amount of minimum bonus payable to the employees then the employee during the accounting year subject to a maximum of twenty per cent, of such salary or wage "

 agree......
 




Hareesh H Sharma
Cleared IPCC..now article

[ Scorecard : 889]
Posted On 01 December 2009 at 10:19

Min 8.33% and max 20%..as of now the company is paying u the min bonus as Bhagyesh illustrated for u sir...But its not the max bonus the company can pay as it points out...it can pay upto 20% of your salary depending upon the profit(allocable surplus) it earns after set off and set on provisions of the act...




Hareesh H Sharma
Cleared IPCC..now article

[ Scorecard : 889]
Posted On 01 December 2009 at 10:22

 For further reference u can browse the given site sir

http://www.vakilno1.com/bareacts/paymentofbonusact/paymentofbonusact.htm



There are 6 Replies to this message








Related Files








Related Threads


Post your reply for What is the Max. Limit of Bonus in Pvt. Ltd. Co.



Your are not logged in . Please login to post replies

Click here to login


Not a member yet ?? Click here to signup

Message







    

  • Use thank button to convey your appreciation.
  • Maintain professionalism while posting and replying to topics.
  • Try to add value with your each post.



Forum Home | Forum Portal | Member Control Center | Who is Where | Popular Threads | Today's Topic | Recent Posts | Today's Posts | Post New Topic | Thread With Files | Top Threads This Month | Forum Stats | Unreplied Threads

back to the top