salary break up & bonus calculation
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salary break up & bonus calculation

amit_t Started The Discussion:

DEar sir,
we have foll staff ,
ours is an trading organisation , only problem facing is bonus for diwali
salary scales are
some with 14000 monthy
9000 monthly
50000 monthly
guide how break up for these so that we have to pay minimum bonus
** also according to norms how much we have to pay bonus of each
thanks & regards
Amit

soomanighosh - Member Since: Mar 2010
what are the various non taxable components opted by large IT companies apart from vehicle/petrol allowance and SODEXO COupons

siba - Member Since: Aug 2006
Dear Amit

U can include Bonus (8.33%) of basic in your ctc while recruiting.this is the ommon method used by most of the organizations.
If u will go to bonus act,1965

The bonus percentage will be calculated through set -on & set off method.
Pls go through the payment of the bonus act for detail.

Thanks

sgenius - Member Since: Nov 2010
minimum bonus is 8.33% of annual salary. which comes to one month salary. to pay bonus in diwali in NOV-2010, you can calculate bonus from April-2009 to March-2010. if a person joined in october of 2009 then you have to pay bonus from october-2009 to march-2010 @8.33% of total of 6 months.

soomanighosh - Member Since: Mar 2010
Apart from Bonus/Gratuity, what else. How can we make up for the 30% reimbursables(Flexible benefits) to your CTC.

sanchita.m.sutar - Member Since: Sep 2010
Dear all seniors,

i m working in small packaging company, i have to set up all HR- Department. in organisation grade & level & compensation policy are not preapared. as per designation the salary not decided properly And it is very difficult for me to prepared. plz help me.

Thanks & Regrads
sanchita
9096399951


r.sairam - Member Since: Oct 2010
Quote:
Originally Posted by amit_t View Post
DEar sir,
we have foll staff ,
ours is an trading organisation , only problem facing is bonus for diwali
salary scales are
some with 14000 monthy
9000 monthly
50000 monthly
guide how break up for these so that we have to pay minimum bonus
** also according to norms how much we have to pay bonus of each
thanks & regards
Amit
Dear Amit
it is not clear whether you ara talking of bonus under the Payment of Bonus Act 1965. It appears youare talking of bonus that is being paid on the occassion of Diwali which is like a customary bonus. There are two ways of lookinag at the problem.
1) if there is an agreement with the employees on the apyment of Diwali bonus, that agreement must have stipulated the items of salary which shall be taken into account for computing bonus. In that event you can follow the terms of agreement.
2) Secondly, in the absence of such an agreement, the custom can be relied. Find out what are the items of salry that are being considered for computing bonus since it's inception. Yiou can follow them.

However so far bonus under the Bonus Act is concerned, normally the following items of salary are included.
1) basic pay
2)dearness allowance
3) Free food allowance or the value of free food suplied.

The following items of payments are normally excluded.

1) Any allowance which is for the time being paid(temporarily paid)
2)value of any housing accomodation, or any amenity as light etc, supplied.
3) Travelling concession
4) contributions to P.F and pension
5) retrench ment compensation
6) any bonus like incentive bonus etc.
7) any commission
8) any O.T wages

B.Sai Kumar
consultant in Hr and Labour Laws

kool_nidhi_83 - Member Since: Jun 2008
Quote:
Originally Posted by amit_t View Post
DEar sir,
we have foll staff ,
ours is an trading organisation , only problem facing is bonus for diwali
salary scales are
some with 14000 monthy
9000 monthly
50000 monthly
guide how break up for these so that we have to pay minimum bonus
** also according to norms how much we have to pay bonus of each
thanks & regards
Amit
Dear Amit,

1.As diwali bonus is the customary bonus it can be adjusted in the statutory bonus i.e. Minimum 8.33%.
2. Eligiblity for bonus is:
Basic Upto 10000
Min. 30 days working in a year.
For calculation 3500 is considered as Basic Amount.

Regards
Nidhi

HR Trainer

Appin Technology Lab

atulkochhar - Member Since: Aug 2008
it works out to 291(8.33%) in a month approx based on maximum of 3500 Rs(based on bonus act) It IE dIWALI bonus may be made applicable to certain category of employees ie below certain basic only.

namo.sharma - Member Since: Mar 2011
Dear All,

The minimum bonus should be 8.33% of annual CTC and maxcimum would be 20% and there is also provison that if company not paying 8.33% of annual ctc as a bonus than they can give minimum 3500 Rs as a bonus amount to employees.


Namo Narayan Sharma
08690659423/09725524587

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