__ajit.majhi07@gmail.com__Started The Discussion:

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

Ajit

Posted 30th October 2006 From India, Mumbai

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.

Regards,

Mallet.

Posted 31st October 2006 From India, Hyderabad

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 %

Regards

Joseph

Posted 23rd August 2008 From India, Mumbai

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)

Regards,

Madhu.T.K

Posted 23rd August 2008 From India, Kannur

Posted 22nd November 2008 From India, Rohtak

**Avinash you dont make confused to others if you want to reply make it clear properly otherwise leave it.**

Dear Formula is

Bonus=Basic Salary+DA*12*8.33%

For Example if my Basic salary is 5000 and DA 1000 so how much i'll get bonus

Bonus =5000+1000*12*8.33/100

= 6000*12*8.33/100

= 72000*8.33/100

= 5997.6 RS. Annual Bonus

and if company have big profits for any financial year so it can be 20% maximum.

Regards

Anish

Posted 9th January 2010 From India, Delhi

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.

Regards,

AS

Posted 11th January 2010 From India, Rohtak

Please guide me.

I have question.. in my company our salary structure is as following . if person salary = 8500/- then its break up, like.

BASIC = 4250/-

HRA = 1488/-

CONV = 800/-

SPL ALL=1962/-. so please tell me how can i count Bonus...? should i count bonus only on BASIC (4250) or can i add HRA (1488) also..

and also want to know that, if person salary is 12000/- pm so he will get any bonus or no?

Pls help me.

Thanks,

Yash

Dear Formula is

Bonus=Basic Salary+DA*12*8.33%

For Example if my Basic salary is 5000 and DA 1000 so how much i'll get bonus

Bonus =5000+1000*12*8.33/100

= 6000*12*8.33/100

= 72000*8.33/100

= 5997.6 RS. Annual Bonus

and if company have big profits for any financial year so it can be 20% maximum.

Regards

Anish[/QUOTE]

Posted 22nd July 2010 From India, Vadodara

Please guide me.

I have question.. in my company our salary structure is as following . if person salary = 8500/- then its break up, like.

BASIC = 4250/-

HRA = 1488/-

CONV = 800/-

SPL ALL=1962/-. so please tell me how can i count Bonus...? should i count bonus only on BASIC (4250) or can i add HRA (148:cool: also..

and also want to know that, if person salary is 12000/- pm so he will get any bonus or no?

Pls help me.

Thanks,

Yash

Posted 23rd July 2010 From India, Vadodara

Regards,

Madhu.T.K

Posted 23rd July 2010 From India, Kannur

Awaiting for your reply

Anish

Posted 11th August 2010 From India, Delhi

Regards,

Madhu.T.K

Posted 11th August 2010 From India, Kannur

I heard that employers employing less than 10 person are not liable to pay bonus...?

Please clarify

my email id is

Thank you

Posted 7th October 2010 From India, Mumbai

If you do not have DA then you are to consider Basic & if you are also providing food allowance in other allowances then pay bonus on both these heads. For more details you may go through section 2(21) of the Payment of Bonus Act, 1965.

Regards,

R.N.Khola

Skylark Associates, Gurgaon (Haryana)

Labour Law Consultants (m) +91 9810405361

**www.skylarkassociates.com/**

Posted 7th October 2010 From India, Delhi

If the salary as defined under the Act is more than Rs. 10,000/-PM then the employee is not entitled to get bonus under the Payment of Bonus Act, 1965.

With Regards,

R.N.Khola

**Skylark Associates, Gurgaon (Haryana)**

(Labour Law Consultants) (M) 09810405361

**www.skylarkassociates.com/**

Posted 28th October 2010 From India, Delhi

Even if the salary is Rs. 4625, the ceiling salary of Rs. 3,500, will be taken for bonus calculation.

Minimum bonus is 8.33%, which is the % form of 1/12. Accordingly If the salay is Rs. 3500, 3500x12/12 = 3500 will be paid as minimum. For 10 months this will be 3500 x 10/12 = Rs. 2916.67.

Abbas.P.S

Posted 6th November 2010 From India, Bangalore

Whether bonus @ 8.33% will be paid flatly for 12 months or it can be calculated on prorata basis based on attendance as follows :-

Somebody suggested :-

Bonus=Basic Salary+DA*12*8.33%

For Example if my Basic salary is 5000 and DA 1000 so how much i'll get bonus

Bonus =5000+1000*12*8.33/100

= 6000*12*8.33/100

= 72000*8.33/100

= 5997.6 RS. Annual Bonus

I want clarification :-

Bonus = Basic Salary + DA * (instead of 12 it should be number of days completed during year ) * 8.33 %

Suppose attendance is 35 days than calculation will be as follows :-

for deriving the per day rate of bonus considering ceiling of 7000 salary per month :-

7000*12*8.33/100= 6997.2

6997/312 (12months@26 days per month) = 22.43 per day

bonus for 35 days ( completed in year)=

35*22.43 = 785.00

please clarify & oblige

Posted 1st May 2016 From Netherlands

Madhu.T.K

Posted 2nd May 2016 From India, Kannur

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