Hi seniors, One of the employee salary is 6000/- PM plz let me know the bonus calculation weather it will calculate... 6000*12*8.33/100 or 7000*12*8.33/100 Regard Sumit charan
From India, Jodhpur
4From India, Jodhpur
The Bonus is Rs. 7000/- or the minimum wage which ever is higher, so it will be calculated on 7000 and not 6000
From India, Mumbai
From India, Mumbai
If Basic Salary is Rs. 6000/- (Gross Salary Limit is Rs. 21000) then Bonus will Calculate on Rs. 6000/- only, Min. % is 8.33 & Max. % is 20. 6000*12*8.33/100) Regards, S. K. Gupta
From India, undefined
From India, undefined
Sir... according to the rule bonus should be
Calculate on 7000 or minimum wages
Whichever is higher therefore if basic
Salary is 6000 bonus will be calculate on 7000/- ceiling limut not on 6000/-
Pls correct if i am wrong..........
From India, Agra
Calculate on 7000 or minimum wages
Whichever is higher therefore if basic
Salary is 6000 bonus will be calculate on 7000/- ceiling limut not on 6000/-
Pls correct if i am wrong..........
From India, Agra
Calculate Bonus on Basic or minimum wages Whichever is higher.
In case if basic as per min wages applicable to employee is Rs. 6000/- or less,
the basic will be considered as Rs. 6000.
If Min wages are more than Rs. 6000, then Min Wages. Then Rs. 7000. limit is not applicable
From India, Mumbai
In case if basic as per min wages applicable to employee is Rs. 6000/- or less,
the basic will be considered as Rs. 6000.
If Min wages are more than Rs. 6000, then Min Wages. Then Rs. 7000. limit is not applicable
From India, Mumbai
Yes it is on 7000 or mimimum wages applicable as per schduled employment, such as MW in Paper & paper Board is applicable 8245.25 then it will be calculated on 8245.25.
From India, Nagpur
From India, Nagpur
Sir... what do you means by minimum wages is it as per minimum wages act.
Then as per act. Minimum wages in our state is 7200 PM does that mean the bonus shall be calculate on 7200 not on ceiling limit 7000/-
Your view please......
From India, Agra
Then as per act. Minimum wages in our state is 7200 PM does that mean the bonus shall be calculate on 7200 not on ceiling limit 7000/-
Your view please......
From India, Agra
Calculation of Bonus
Taking the demands of the trade unions head on, Section 12 of the Principal Act has been amended to state that where the salary or wage of an employee exceeds INR 7,000 per month or the minimum wage for the scheduled employment, the bonus payable to such employee shall be calculated as if his salary or wage were INR 7,000 per month or the minimum wage for the scheduled employment, whichever is higher.
The Principal Act provided that the bonus payable to an employee shall be in proportion to his/her salary. However, where an employee's salary was over INR 3,500 per month, for the purposes of calculating bonus, the salary was to be assumed to be INR 3,500 per month. With a view to maximise bonus earnings, the Amendment Act has increased the wage ceiling for calculation to INR 7,000 and has also factored in possibilities where the minimum wage payable to such employees may be over INR 7,000, thereby giving employees the flexibility to draw a higher amount as bonus.
While this appears to be yet another attempt made by the Government at ensuring employee satisfaction, the inclusion of the minimum wage component in calculating bonus may hinder with the accounting policies of companies having a national presence. It may be noted that in accordance with the provisions of the Minimum Wages Act, 1948, minimum wage rates may be prescribed at a State as well as a Central level. More often than not, publication of notifications pertaining to minimum wage rates are delayed and have been subject to anomalies. Aggregating relevant data pertaining to minimum wage rates and ensuring that accurate calculations are made, for each state, may obstruct companies in processing the payment of bonuses.
From India, Mumbai
Taking the demands of the trade unions head on, Section 12 of the Principal Act has been amended to state that where the salary or wage of an employee exceeds INR 7,000 per month or the minimum wage for the scheduled employment, the bonus payable to such employee shall be calculated as if his salary or wage were INR 7,000 per month or the minimum wage for the scheduled employment, whichever is higher.
The Principal Act provided that the bonus payable to an employee shall be in proportion to his/her salary. However, where an employee's salary was over INR 3,500 per month, for the purposes of calculating bonus, the salary was to be assumed to be INR 3,500 per month. With a view to maximise bonus earnings, the Amendment Act has increased the wage ceiling for calculation to INR 7,000 and has also factored in possibilities where the minimum wage payable to such employees may be over INR 7,000, thereby giving employees the flexibility to draw a higher amount as bonus.
While this appears to be yet another attempt made by the Government at ensuring employee satisfaction, the inclusion of the minimum wage component in calculating bonus may hinder with the accounting policies of companies having a national presence. It may be noted that in accordance with the provisions of the Minimum Wages Act, 1948, minimum wage rates may be prescribed at a State as well as a Central level. More often than not, publication of notifications pertaining to minimum wage rates are delayed and have been subject to anomalies. Aggregating relevant data pertaining to minimum wage rates and ensuring that accurate calculations are made, for each state, may obstruct companies in processing the payment of bonuses.
From India, Mumbai
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Bonus Calculation.xls
BONUS CALCULATION RULE (1).pdf