Dear Senior's
I am working with manufacturing company of Glass as mgr - hr. Pls advice me how to calculate the Bonus in manufacturing company, what is the basic salary for this division? what is the criteria of bonus & how it should be calculated with the current norms.
Looking forward hearing you soon.
With Warms Regards
Kavita Pal
From India, Ghaziabad
I am working with manufacturing company of Glass as mgr - hr. Pls advice me how to calculate the Bonus in manufacturing company, what is the basic salary for this division? what is the criteria of bonus & how it should be calculated with the current norms.
Looking forward hearing you soon.
With Warms Regards
Kavita Pal
From India, Ghaziabad
Dear Ms.Kavita,
As per Bonus Act, Wages should be Rs.3500/- per month. percentage is 8.33% to 20% depending upon the profit of the company.
Hence 3500 x 8.33% = 292 per month or Rs.3504/- Per annum
If you calculate for Maximum percentage then 3500 x 20% = 700per month or Rs.8400/- Per annum
From India, Madurai
15As per Bonus Act, Wages should be Rs.3500/- per month. percentage is 8.33% to 20% depending upon the profit of the company.
Hence 3500 x 8.33% = 292 per month or Rs.3504/- Per annum
If you calculate for Maximum percentage then 3500 x 20% = 700per month or Rs.8400/- Per annum
From India, Madurai
Dear Ms Kavita,
First of all it is essential to calculate bonus as per Schedule-II of Payment of Bonus Act(non banking organization) - to get available surplus, allocable surplus, set on and set off. Then only possible to arrive at quantum of bonus as mentioned by Vignesh Kumar. Talk to Accounts dept who will take care and it is always better to audit the bonus account of every year to pay bonus as per payment of bonus act otherwise it becomes customary bonus.
S K Bandyopadhyay
USD HR Solutions
From India, New Delhi
First of all it is essential to calculate bonus as per Schedule-II of Payment of Bonus Act(non banking organization) - to get available surplus, allocable surplus, set on and set off. Then only possible to arrive at quantum of bonus as mentioned by Vignesh Kumar. Talk to Accounts dept who will take care and it is always better to audit the bonus account of every year to pay bonus as per payment of bonus act otherwise it becomes customary bonus.
S K Bandyopadhyay
USD HR Solutions
From India, New Delhi
Hi Pal,
1. For calculation of Bonus, Salary/Wage of all employees whose per month salary (Basic + DA) exceeds Rs. 3500/- but less than Rs. 10,000/-, shall be taken as Rs. 3500/- only.
2. Computation of bonus is to be worked out as per Schedule I to IV of the Act.
3. The method for calculation of annual bonus is as follows:
Calculate the Available Surplus.
Available Surplus =
Gross Profit – (deduct) the following :
Depreciation admissible u/s 32 of the Income tax Act.
Development allowance
Calculation of Bonus is shown as under
Minimum Bonus Rs 3500 X 8.33% = Rs.3504/ PA,
Maximum Bonus Rs 3500 X 20%= Rs 8400/ PA
From India, Calcutta
1. For calculation of Bonus, Salary/Wage of all employees whose per month salary (Basic + DA) exceeds Rs. 3500/- but less than Rs. 10,000/-, shall be taken as Rs. 3500/- only.
2. Computation of bonus is to be worked out as per Schedule I to IV of the Act.
3. The method for calculation of annual bonus is as follows:
Calculate the Available Surplus.
Available Surplus =
Gross Profit – (deduct) the following :
Depreciation admissible u/s 32 of the Income tax Act.
Development allowance
Calculation of Bonus is shown as under
Minimum Bonus Rs 3500 X 8.33% = Rs.3504/ PA,
Maximum Bonus Rs 3500 X 20%= Rs 8400/ PA
From India, Calcutta
Hi Sibabrata, Can you please tell me the amount for bonus to be calculated for the employees whose salary exceeds above Rs 10000/-? Regards, Aishwarya
From India, Badnawar
From India, Badnawar
Dear Anoymous,
In response to your query, I like to submit that if an employee is drawing a salary more than Rs 10,000/ pm (assuming Basic & DA), he is not coming within the purview of Bonus Act.Hence, he is not entitled to receive any bonus under Act.
However, some of the good employers, in order to motivate their employees,they consider paying ex-gartya payment at their suit will instead of bonus.
From India, Calcutta
In response to your query, I like to submit that if an employee is drawing a salary more than Rs 10,000/ pm (assuming Basic & DA), he is not coming within the purview of Bonus Act.Hence, he is not entitled to receive any bonus under Act.
However, some of the good employers, in order to motivate their employees,they consider paying ex-gartya payment at their suit will instead of bonus.
From India, Calcutta
Hi Sibabrata Mam
I m working in a small scale manufacturing firm as an HR Executive.Our organization has given the operators paid holiday for Diwali and the next day ie 23th Oct and 24th Oct.25th being Saturday, many of the operators didn't come to work and 26th was Sunday, so they got leave for 4 consecutive days.But the management insisted on taking strict actions against the employees who were absent on 25th as they were informed earlier about the deductions.So they told me that the ones who were absent on 25th will not be paid for 23rd,24th and 26th.Is this rule mentioned in the factories act,1948.I know about "sandwich rule" but is it applicable for 23rd Oct also.As the operators worked a day before 23rd Oct and it was Diwali.This has created a lot of tension in the work environment.Kindly suggest a suitable course of action.
From India, Badnawar
I m working in a small scale manufacturing firm as an HR Executive.Our organization has given the operators paid holiday for Diwali and the next day ie 23th Oct and 24th Oct.25th being Saturday, many of the operators didn't come to work and 26th was Sunday, so they got leave for 4 consecutive days.But the management insisted on taking strict actions against the employees who were absent on 25th as they were informed earlier about the deductions.So they told me that the ones who were absent on 25th will not be paid for 23rd,24th and 26th.Is this rule mentioned in the factories act,1948.I know about "sandwich rule" but is it applicable for 23rd Oct also.As the operators worked a day before 23rd Oct and it was Diwali.This has created a lot of tension in the work environment.Kindly suggest a suitable course of action.
From India, Badnawar
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Amendment to Payment of Bonus Act 2015.jpg
Company Profile.ppt