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
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What is the Max. Limit of Bonus in Pvt. Ltd. Co.
Replies (6)
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
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.
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!
| 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......
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...
For further reference u can browse the given site sir
https://www.vakilno1.com/bareacts/paymentofbonusact/paymentofbonusact.htm
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