bonus act

Save Share

This query is : Resolved

Badal Paswan (Querist)

28 December 2010 which is the minimum days to acomplishes a worker to get bonus and what is the maximum salary/ wages to ask for a bonus ?

CA.RAJIV SHUKLA FCA

CA.RAJIV SHUKLA FCA (Expert)

28 December 2010 Dear Badal,

Worker need to work minimum 30 Days in the Facotry or establishment in which Bonus act applies on

(a) every factory

(b) every other establishment employing 20 or more persons.

The Government can, however, apply the Act to any establishment employing less that 20 but not less than 10 persons. An establishment to which the Act applies shall continue to be governed by the Act irrespective of any fall in the number of person employed therein. {Section 1}

If an employee is drawing a salary or wage not exceeding Rs. 3500.00 per month, he is entitled to get bonus on his entire salary or wage. If an employee is getting a salary or wage exceeding Rs. 3500.00 per month, but not exceeding 10000.00 per month, the bonus payable to him is to be calculated as if his salary or wage were Rs. 3500.00 per month. An employee getting a salary or wage exceeding Rs. 10000.00 per month is not entitled to get bonus. {Section 12}

The employer is bound to pay to his employees every year a minimum bonus of 8.33% of the salary or wage or Rs. 100.00, whichever is higher, whether be has any allocable surplus or not. {Section 10}

For eligibility of bonus act : Salary limit is Rs. 10000/- per month &

For calculation of bonus : salary limit is 3500/- per month.

Badal Paswan

Badal Paswan (Querist)

29 December 2010 Thanks Sir.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now