Minimum & Maximum bonus

Minimum & Maximum bonus Every employee is right to take a bonus so that every establishment is also obliged to give a bonus to their employee.

But here the question is that

 How much Bonus give to the employee?

 What are the percentages for considering a bonus?

 Is the bonus ratio of employees the same for all?

 What are the minimum percentages for bonuses?

What are the maximum percentages for bonuses?

Your all doubt Will clear in this article.

→ After the complete understanding of the Eligibility of the Bonus, How much amount of the bonus is given by the employer to his employees?

→ Mainly sections 10 and 11 of the payment of bonus act deals with the Minimum & Maximum bonus respectively.

MINIMUM BONUS

→→ According to section 10 of the PB act 1965,

“every employer shall be

bound to pay

to every employee

in respect of the accounting year.”

→So here, A minimum bonus shall be 8.33% of the salary and wages earned by the employee in the accounting year or 100 rupees among them which are higher is given to the employee.

According to section 13 of this act,

Where an employee has not worked for all the working days

in an accounting year

Then Minimum bonus 100 Rupees or In some case 60 Rupees.

In any case, the bonus is higher than 8.33% of his salary or wages for the days he worked in that accounting year then proportionately it’s reduced. So, employees regularity is very essential for the bonus.

In a short way, 8.33 % of the salary is payable as a Bonus to the employee by its employer.

Further details

After coming into force of this Act, the bonus has become an implied term of employment not dependent upon the profits.

  • Employees are entitled to a festival bonus only if there is an implied agreement or it is paid as a customary bonus.

The minimum bonus under the Act is a right vested in an employee under a statute.

The Right to take the minimum bonus is a legal right of the Employee.

The right to minimum bonus is a statutory right that vests in the employee and no further adjudication of the right to the payment of minimum bonus is called for. It constitutes an existing statutory right

  • The denial of this right by the employer does not render it an industrial dispute calling for adjudication by way of reference under Section 10 of the Industrial Disputes Act read with Section 22 of the Payment of Bonus Act.

A claim for the payment of a minimum bonus cannot constitute an industrial dispute within the meaning of Section 22 of the Payment of Bonus Act. However, for the enforcement of this right, an employee can file an application under Section 33-C(2) of the Industrial Disputes Act. Section 10 of the Payment of Bonus Act fixes the amount of bonus payable by an employer to every employee from the allocable surplus in respect of the accounting year.

Maximum Bonus

Mainly section 11 of the payment of the bonus act deals with maximum bonus pay to employees by the employer.

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.

In a short way, their maximum bonus is 20% of the salary and wages of the Accounting year.

Conclusion 3 Minimum & Maximum bonus

→ There is compulsory to pay the bonus to the employee by the employer by the payment of the bonus act.

According to section 10 of the payment of the bonus act, the minimum bonus is 8.33% of the salary or 100 rupees among them which is higher is payable to employees.

  • According to section 11 of the Payment of the bonus act maximum bonus is 20% of the salary.

Read This Also

The Payment of The Bonus Act

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