Bonus Act was first introduced in India in 1917 but it came in action in 1965. It is An Act to provide for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and for matters connected therewith.
- Proper guidance will be provided to the employer or company to maintain all Records in form no. C&D as required under this act.
- Compute the Gross Profit and available Surplus with the cooperation of account department for proper distribution of Bonus.
- Guidelines will be provided to the management to check the Eligibility of employee for the bonus.
- Timely Updates will be provided about the change or modification in law if any.
- Per amendment to the Payment of Bonus Act 1965, all employees drawing a basic salary (Base Pay) of less than or equal to Rs.10,000/- per month are eligible for Bonus for the financial year 2006-2007.
The Act is applicable from April 1, 2006 which means that the Act is applicable for the Financial Year 2006 – 2007 (April 2006 to March 2007). Per Bonus Act, minimum bonus payable is Rs.100/- and the maximum bonus payable is Rs.8400/- The criteria involved for Bonus Calculation and payment for the financial year 2006-2007 (April 1, 2006 to March 31, 2007) is as follows:
- Employees joined on or before 28-Feb-2007 and whose Basic Salary (Base Salary) was less than or equal to Rs.10,000/-per month are covered under this Bonus payment.
- Bonus under the Act is calculated at 20% on actual basic salary (base pay) or Rs.3500/- per month, whichever is lower
- Bonus is pro-rated for the period the employee has served during the financial year 2006-2007
- Employee should have completed at least a minimum of 30 days during the financial year 2006-2007