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Eligibility for bonus
Condition that the Profits are remaining amounts after deducting expenses, depreciation and taxes.
Proportionate, reduction in bonus in certain cases Sec 13 Where an employee has not worked for all the working days in an accounting year, the minimum bonus of one hundred rupees or, as the case may be, of sixty rupees, if such bonus is higher.
3,75,000 2,50,000* Set on 1,25,000 Set on 2,20,000 1,25,000 (2) (4).
Calculation of bonus with respect to certain employees.The examples given below are based on a performance appraisal miitopia save slots system with a five-point rating scale and seven performance factors.Employees are not entitled receive bonus excess than 20 of their wage or salaries first schedule See section 4(a) computation OF gross profits in the case of a banking company Accounting year ending.Sec 8 (2007 amendment) An employee will be entitled only when he has worked for 30 working days in that year.Employees eligible for bonus: The Act mandates payment of bonus to employees whose salary or wage is up to Rs 21,000 per month.If any such agreement is made in between the employer and employee, government permission is needed.Family members applying for the bonus can print the application form for family members.Third schedule (See section 6(d) Item.Full Description, there are four separate steps in the Bonus Plan -.Deduct (a) Capital receipts and capital profits (other than profits on the sale of assets on which depreciation has been allowed for income-tax or agricultural income-tax).This is necessary to maintain compensation relativity and provide incentives to employees on higher incomes. .Sec 12 (2015 amendment) Where the salary or wage of an employee exceeds.7,000/- per mensem, the bonus payable to such employee under Sec.10, or as the case may be, under Sec.11, shall be calculated as if his salary or wage were.7,000/- per mensem.Supervisors, specialists, middle managers,.Payment of Bonus Act, 1965, tHE employees provident funds AND miscellaneous provisions ACT, 1952.(If, and to the extent, charged to Profit and Loss Account.) Any other reserves Total of Item.2.Allocable surplus sec 2 (4) Allocable surplus 67 of the available surplus (other than banking companies) or 60 of the available surplus (banking companies and companies linked with abroad) Payment of bonus calculated on the allocable surplus which is derived by the above calculation Set-On.(If, and to the extent, charged to Profit and Loss Account) (e) Any amount certified by the Reserve Bank of India in terms of sub-section (2) of Sec.34-A the Regulation Act, 1949 (10 of 1949) (f) Losses of, or expenditure relating to any business situated.
A rating score of one represents very poor performance, three is competent and five is excellent.
Studies indicate that employees find the process of appraisal more satisfying and credible when it is linked to reward outcomes.
Capital expenditure and capital losses (other than losses on sale of capital assets on which depreciation has not been allowed for income-tax or agricultural income-tax) ;.