Dear All,
Please give solution for below
1) Salary of employee is 10,000/- his basic is 4,000/- so as per act bonus will calculate on 3,500 or 4,000?
2) Salary of employee is 20,000/- his basic is 8,000/- so as per bonus act his basic is less than 10,000 so is he eligible for bonus? (in both cases employee has completed 30 days service )
Thanks
From India, Pune
11Please give solution for below
1) Salary of employee is 10,000/- his basic is 4,000/- so as per act bonus will calculate on 3,500 or 4,000?
2) Salary of employee is 20,000/- his basic is 8,000/- so as per bonus act his basic is less than 10,000 so is he eligible for bonus? (in both cases employee has completed 30 days service )
Thanks
From India, Pune
Dear Member in both the cases the salary for the purpose of calculating Bonus will be Rs. 3500/- Regards Preetam Deshpande
From India, Mumbai
From India, Mumbai
Hello Mahesh,
* If members salary is 10000Rs and Basic is 4000Rs than as per 8.33% of basic figure will comes at 333.2.
Yearly it will come 3998.4 = You have to pay as per rule 3500 even full 3998.4 can be given
* If members salary is 20000Rs and Basic is 8000Rs than as per 8.33% of basic figure will comes at 666.4.
Yearly it will come 7996.8 = You have to pay as per rule 3500 even full 7996.8 can be given
Thanking you,
Regards,
Ashish
From India, Pune
* If members salary is 10000Rs and Basic is 4000Rs than as per 8.33% of basic figure will comes at 333.2.
Yearly it will come 3998.4 = You have to pay as per rule 3500 even full 3998.4 can be given
* If members salary is 20000Rs and Basic is 8000Rs than as per 8.33% of basic figure will comes at 666.4.
Yearly it will come 7996.8 = You have to pay as per rule 3500 even full 7996.8 can be given
Thanking you,
Regards,
Ashish
From India, Pune
Dear Asish,
I am not aware of your calculation. For those entitled for bonus, the salary cap for bonus calculation is Rs. 3500 only. Hence there is no accountability for Rs. 4000 and Rs. 8000 in this regard. Also 8.33 is the percentage form of 1/12 which means one month salary for one year's service. Therefore while calculating bonus forget about 8.33%, but divide by 12. Accordingly Mr. Preetam Deshpande is perfect in his posting.
Abbas.P.S
From India, Bangalore
I am not aware of your calculation. For those entitled for bonus, the salary cap for bonus calculation is Rs. 3500 only. Hence there is no accountability for Rs. 4000 and Rs. 8000 in this regard. Also 8.33 is the percentage form of 1/12 which means one month salary for one year's service. Therefore while calculating bonus forget about 8.33%, but divide by 12. Accordingly Mr. Preetam Deshpande is perfect in his posting.
Abbas.P.S
From India, Bangalore
Dear Mahesh,
Refer to your query on the above subject, Pl refer Sec 2(2) and Sec 2(10)provisions under Payment of Bonus Act -1965.If any employees whose wages are less than Rs.10,000/- per mensum i.e.wages means Basic + D.A.only.Other Allowances such as conveyance, HRA, any incentive/commission does not come under part of the wage. In Both cases you have to pay Minimum Bonus @Rs.3500/- per Anum. Maximum Bonus payable @20% calculated on Rs.3500/- i.e.Rs.8400/- Only.
Hope your doubt clarify.
Thanks & Regards,
V R RAO PULIPAKA
From India, Hyderabad
Refer to your query on the above subject, Pl refer Sec 2(2) and Sec 2(10)provisions under Payment of Bonus Act -1965.If any employees whose wages are less than Rs.10,000/- per mensum i.e.wages means Basic + D.A.only.Other Allowances such as conveyance, HRA, any incentive/commission does not come under part of the wage. In Both cases you have to pay Minimum Bonus @Rs.3500/- per Anum. Maximum Bonus payable @20% calculated on Rs.3500/- i.e.Rs.8400/- Only.
Hope your doubt clarify.
Thanks & Regards,
V R RAO PULIPAKA
From India, Hyderabad
Dear All,
It is a very simple calculation that Employer is bound to pay at least Rs 3500/-(whether it comes by calculation of 8.33% to 20%) annually as bonus, if not comes under exempted organization(See bonus act 1965). Of course if employer wish he may provide any amount to employee as bonus but cannot less than 3500/- annually. Only in case employee is not regular or was absent for a long time or as punishment we may reduce the amount of Bonus from Rs 3500/- with a appropriate justification.
For better information you may see earlier inputs on Bonus.
Dear Seniors, please rectify if I am wrong.
Thanks & Regards
Abhay Kishore
From India, Delhi
It is a very simple calculation that Employer is bound to pay at least Rs 3500/-(whether it comes by calculation of 8.33% to 20%) annually as bonus, if not comes under exempted organization(See bonus act 1965). Of course if employer wish he may provide any amount to employee as bonus but cannot less than 3500/- annually. Only in case employee is not regular or was absent for a long time or as punishment we may reduce the amount of Bonus from Rs 3500/- with a appropriate justification.
For better information you may see earlier inputs on Bonus.
Dear Seniors, please rectify if I am wrong.
Thanks & Regards
Abhay Kishore
From India, Delhi
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf