Bonus to be paid under Payment of Bonus Act,1965 is to be calculated as under :
1. It depends upon the percentage on which your company wants to give bonus to its employees. Minimum bonus is 8.33% of basic salary earned during the accounting year and Maximum is 20% under the payment of Bonus Act,1965.
2. Eligibility : Bonus under Payment of Bonus Act,1965 is required to be to employees whose salary ( Basic) is of less than Rs.3500.00 per month during the accounting year for which bonus is to be paid.
3. Bonus is to be calculated for eligible employees assuming salary ( Basic) as Rs.2500.00 per month or less, if, it is less then Rs.2500.00
4.Multiply the yearly sum of salary thus worked out as per above clause 3 with rate of bonus. The figure is bonus payable to employee under the act.
5. Payment is to be made on Register prescribed under the act.
6. Return of payment of bonus is to be submitted with ALC or other designated authority under the act , within 30 days of payment of bonus to employees.
In addition to above information you shauld keep in mind that we should calculate bonus on number of working days of employees in that period, ie, we should not take into cosideration leaves holidays & absentes for the purpose of calculating Bonus.
Bonus is payed only for the number of worked days from april to march of every eyer completed year which will become due after 9 months from the date of eligibility for payment.
I need your help.
We have one employee who worked from April to March and his basic was Rs. 2700. In the month of october there was LWP for 2 days and besides 8 holidays (incl sundays & festival holidays) and actual total days was 29 and as per bonus act his working days 21. Can you please help in that case how do i calculate bonus.
Under the act as 'BONUS ' no amount can be paid to an employee you have categorised..Any payment made is taxable .Some amounts are booked under ex gratia,special annual pay[taxable] or gifts[FBT applicable] and paid.ESOPs and rewards are others.
Today when CTC is calculated, due to the act limitation this component is included here and total pay announced.
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