Could anyone please explain how to calculate the bonus according to the Payment of Bonus Act, 1965.
I would also like to know what is the min/max bonus to be paid and also will be glad if if you could give me some more information regarding this.
Please explain in a simple way so that anyone can understand.
Waiting for your reply
I am attaching a presentation on Payment of Bonus act 1965.It would explain you all the details of Payment of Bonus act 1965 in short and sweet. The minimum bonus is 8.33% and maximum is 20%. all the details are given in the presentation.
Please feel free to revert in case of any doubts.
I Need Your Help To Calculate Bonus Can Anyone Put Guidelines For The Following ?
1. If Basic+da Is 2000 Then Is It 20 % Bonus Or 8.33 %
2. If Basic+da Is 2501 Then Is It 20 % Bonus Or 8.33 %
3. If Basic+da Is 3400 Then Is It 20 % Bonus Or 8.33 %
4. If Basic+da Is 3501 Then Is It 20 % Bonus Or 8.33 %
8.33% is the statutory bonus payable to those who are eligible for bonus and 20% is the maximum bonus. The rate of bonus will depend upon the profit available for the same. In the PPT of Millet the procedure is explained. However, in practice and where the trade unions are very strong, these steps will not work in practice. The rate will be negotiated and the rate affordable to the company will be declared.
If bonus @ 12% has been agreed then take the Basic + DA salary of individual employee for the year and then take 12% of it to arrive at the amount of bonus. Donot take one month salary and multiply it by 12 (months) to get the aggregate salary because there may be months with lesser salary due to LOP/ ESI leave. For those whose pay are more than 3500 but not more than Rs 10000, calculate the bonus as if the monthly salary is Rs 3500 (Basic + DA)
Dear Formula is
For Example if my Basic salary is 5000 and DA 1000 so how much i'll get bonus
= 5997.6 RS. Annual Bonus
and if company have big profits for any financial year so it can be 20% maximum.
There is no correlation between having big profits & % of bonus to be disbursed.You should try to know the things more precisely before suggesting anything like this.
It is basically management policy , that what % of bonus be disbursed to the employees.Generally employers across industry specifically among Pvt sectors keeps it on Min & Max % as provisioned in the act , on the present slab of Rs. 3500/-.
Intially when Payment of Bonus act was passed in 1965 , it was linked to profit but due to manipulation of profit figures by the employers, Government brought the amendment in the act in 1966 and linked it to salary for a fixed % which is now Min - 8.33% and Max- 20% .
And it should be decided on the principle of set on & set off and allocable and available surplus with the employer.
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