1. #1
    Unregistered

    Normas and time period for bonuses in a company?

    Are there any specific norms for Bonuses in a company? Please guide me regarding the time period for which employees are eligible for the bonus amount and also specify the slab sheet for amount of bonuses.

  2. #2
    SKS Array
    Join Date
    Sep 2012
    Posts
    331

    Re: Normas and time period for bonuses in a company?

    Bonuses if any is declared by the company board if the company is in profit and has surplus funds to distribute to its Employees
    It is not Mandatory on the Part of the Company to declare bonus each year

    It all depends just on Net Profits of the company.
    Bonus is the Reward Given by the management to the employees for their work due to which company earned more profit..
    Normally bonuses are given on annual basis.

    Some company specialliy in BPO and IT sector to contral atritrion also given Retention bonus,say for example if you work for 2 years you will get Rs 25000/- as one time bonus.

    As far as you questions about Slab sheet of Bonus-As i said this is not fixed or there is no rule regarding this as to have a uniform bonus rule across company.
    It varies from company to company

    Bonus if any to be given by any particular company is always mentioned in your appointment letters

  3. #3
    Labournet Law Consultancy Array
    Join Date
    Oct 2012
    Location
    2nd Floor, Patel Complex, Basin Road, Ernakulam, Kerala
    Posts
    287

    Re: Normas and time period for bonuses in a company?

    As far as labour law is concerned bonus has to be paid under the Payment of Bonus Act.
    As per Section 8 of the payment of bonus act each employee has to be paid bonus who has worked for more than 30 days for that accounting years.

    As per section 19 of the payment of bonus Act bonus as to be paid with in 8 months from the date of closing of the accounting years.
    Maximum amount of bonus which can be paid to an employee is 20% of the salary.

    Minimum amount of bonus to be paid is 8.33% of salary.
    LabourNET Law Consultancy
    Leading Labour law Compliance Consultancy in Kerala having PAN India presence.
    8129016649

  4. #4
    Ashok Array
    Join Date
    Jul 2012
    Posts
    2,293

    Re: Normas and time period for bonuses in a company?

    Quote Originally Posted by Unregistered View Post
    Are there any specific norms for Bonuses in a company? Please guide me regarding the time period for which employees are eligible for the bonus amount and also specify the slab sheet for amount of bonuses.
    Dear Aspirant,

    It is not necessary to pay the bonus to the employees every year.Bonus is paid to the employees when the organisation runs in profit during a particular accounting year which ends on 31st march.It is the period from the 1st february of the previous year to the 31st march of the next year.

    But there is a provision to pay the minimum bonus @ 8.33% of the salary to the employees even when the organisation is in loss.

    As per the bonus act 1965 only those employees who were drawing salary /wages up to Rs 10000/per month were entitle to draw the bonus which has been amended in 2012 in the parliament to Rs 22000/per month of salary.

    The ceiling of calculating bonus on the salary amount at Rs 3500/per month has also been changed.

    Generally,the bonus is declared in the month of october.But it also changes from state to state.In Tamil Nadu It is declared on the eve of Pongal i.e in the month of January.

    Thanks.

    Ashok

+ Reply to Thread

Similar Threads

  1. Replies: 8
    Last Post: 16-01-2013, 06:54 PM
  2. Do we need to serve the notice period during the time of probation?
    By Unregistered in forum Professional Discussions
    Replies: 4
    Last Post: 06-11-2012, 09:52 PM
  3. Replies: 10
    Last Post: 30-10-2012, 09:08 AM
  4. Replies: 4
    Last Post: 14-10-2012, 10:52 PM
  5. Details about vocational training in BHEL? Time period and fee for the same?
    By Unregistered in forum Professional Discussions
    Replies: 2
    Last Post: 08-08-2012, 05:44 PM