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Bonus

PIYUSH KUMAR CHAUDHARY (Chartered Accountant) (93 Points)

04 July 2011

Dear Friends,

I want to know that ,would bonus is payble according to bonus act if it is a part of CTC.

i.e If salary (for the puropse of bonus act) limit exceeds 10000 then bonus is still payble or not.

Thanks Regards

Piyush Chaudhary

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4 Replies

valji (Accounts manager-MBA) (2150 Points)
Replied 04 July 2011

Eligible Employees: – Employees drawing wages upto Rs.10000/- per month or less. For calculation purposes Rs.3500 per month maximum will be taken even if an employee is drawing upto Rs.3500 per month. (Sec. 12)

Components of Bonus :- Sec. 2(21) : Salary or wages includes dearness allowance but no other allowances e.g. over-time, house rent, incentive or commission.

1 Like

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 04 July 2011

Originally posted by : valji
	Eligible Employees: – Employees drawing wages upto Rs.10000/- per month or less. For calculation purposes Rs.3500 per month maximum will be taken even if an employee is drawing upto Rs.3500 per month. (Sec. 12) Components of Bonus :- Sec. 2(21) : Salary or wages includes dearness allowance but no other allowances e.g. over-time, house rent, incentive or commission.

agreed

Geetinder Pardesi (Student - CA FINAL) (81 Points)
Replied 08 July 2011

No , Bonus shall not be payable if salary exceeds 10000

Sowmya Pillai (HR) (27 Points)
Replied 12 July 2011

Also i need to know is it mandatory to provide bonus for those whose salary is upto 10000 in any organisation?

I need to know the percentage of bonus to be paid?

I've seen employers paying bonus even for salary more than 10K and it was added in their CTC, For eg. A persons CTC is 4.5L PA(Inclusive of 50k as bonus)..Bonus paid at the end of the calendar year.. on what basis that is done?

Need clarifications on these things..