Bonus eligibility
This query is : Resolved
30 September 2016
Hi Experts,
I have worked with IT Company in Hyderabad for 5 years +, recently I resigned to that job. Please let me know about bonus eligibility.
My Basic Salary details are:
FY 2010-11 – 7200/- (Jan to Mar)
FY 2011 -12 – 9360/-
FY 2012-13 – 12,168/-
FY 2013-14 – 14,500/-
FY 2014-15 – 18,069/-
FY 2015-16 – 20,238/-
FY 2016-17 – 21,250/- (Apr to Aug)
Company have incorporated in 11/03/2010 and it’s in profits, Please let me know should I eligible to get bonus.
Thank you.
I have worked with IT Company in Hyderabad for 5 years +, recently I resigned to that job. Please let me know about bonus eligibility.
My Basic Salary details are:
FY 2010-11 – 7200/- (Jan to Mar)
FY 2011 -12 – 9360/-
FY 2012-13 – 12,168/-
FY 2013-14 – 14,500/-
FY 2014-15 – 18,069/-
FY 2015-16 – 20,238/-
FY 2016-17 – 21,250/- (Apr to Aug)
Company have incorporated in 11/03/2010 and it’s in profits, Please let me know should I eligible to get bonus.
Thank you.
07 October 2016
Hi Expert's,
Please reply to my query. Thank you.
Please reply to my query. Thank you.
18 July 2024
To determine your eligibility for bonus under the Payment of Bonus Act, 1965, we need to calculate your bonus based on the provisions of the Act. Here’s how it typically works:
### Eligibility Criteria:
1. **Applicability:** The Payment of Bonus Act applies to employees earning up to Rs. 21,000 per month in basic wages or salary.
2. **Minimum Service:** You must have worked for at least 30 days in the financial year (April to March) to be eligible for bonus.
### Bonus Calculation:
1. **Calculation Period:** Bonus is calculated based on the salary earned during the financial year (FY), which runs from April to March.
2. **Bonus Rate:** The minimum bonus rate is 8.33% of the salary or wages earned during the accounting year. The maximum bonus is capped at 20% of the salary or wages.
### Example Calculation (FY 2015-16 as an example):
- Basic salary for FY 2015-16: Rs. 20,238 per month from April 2015 to March 2016.
- Months worked in FY 2015-16: 12 months (assuming full-year employment)
Bonus Calculation:
- Annual basic salary = Rs. 20,238 × 12 months = Rs. 2,42,856
- Minimum statutory bonus rate = 8.33%
- Minimum bonus = 8.33% of Rs. 2,42,856 = Rs. 20,229.27 (approx.)
### Conclusion:
Based on your provided salary details and assuming you have worked for at least 30 days in each financial year, you appear to be eligible for bonus under the Payment of Bonus Act for the relevant years.
- **FY 2010-11 to FY 2016-17:** You should calculate the basic salary for each financial year and apply the bonus rate (8.33% or higher, if your company has a higher practice).
- **Eligibility:** Since your company is profitable and you meet the basic criteria of the Act, you should be eligible for bonus for the years you have worked.
Please note:
- Consult with your HR department or payroll department to determine the exact bonus amount and payment schedule.
- Bonus calculation can vary based on specific company policies and practices, so it’s advisable to get confirmation from your employer regarding the exact bonus amount and eligibility criteria applied in your case.
### Eligibility Criteria:
1. **Applicability:** The Payment of Bonus Act applies to employees earning up to Rs. 21,000 per month in basic wages or salary.
2. **Minimum Service:** You must have worked for at least 30 days in the financial year (April to March) to be eligible for bonus.
### Bonus Calculation:
1. **Calculation Period:** Bonus is calculated based on the salary earned during the financial year (FY), which runs from April to March.
2. **Bonus Rate:** The minimum bonus rate is 8.33% of the salary or wages earned during the accounting year. The maximum bonus is capped at 20% of the salary or wages.
### Example Calculation (FY 2015-16 as an example):
- Basic salary for FY 2015-16: Rs. 20,238 per month from April 2015 to March 2016.
- Months worked in FY 2015-16: 12 months (assuming full-year employment)
Bonus Calculation:
- Annual basic salary = Rs. 20,238 × 12 months = Rs. 2,42,856
- Minimum statutory bonus rate = 8.33%
- Minimum bonus = 8.33% of Rs. 2,42,856 = Rs. 20,229.27 (approx.)
### Conclusion:
Based on your provided salary details and assuming you have worked for at least 30 days in each financial year, you appear to be eligible for bonus under the Payment of Bonus Act for the relevant years.
- **FY 2010-11 to FY 2016-17:** You should calculate the basic salary for each financial year and apply the bonus rate (8.33% or higher, if your company has a higher practice).
- **Eligibility:** Since your company is profitable and you meet the basic criteria of the Act, you should be eligible for bonus for the years you have worked.
Please note:
- Consult with your HR department or payroll department to determine the exact bonus amount and payment schedule.
- Bonus calculation can vary based on specific company policies and practices, so it’s advisable to get confirmation from your employer regarding the exact bonus amount and eligibility criteria applied in your case.
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