rakes2004 Started The Discussion:
HOW THE BONUS WILL BE CALCULATED IN PRESENT SITUATION WHEN MINIMUM 8.33% IS TO BE GIVEN.
E.G. ONE PERSON IS GETTING
1. BASIC FOR 365 DAYS 9000 X 12 = 108000/- THEN CALCULATION IS
9000 X 12 = 108000/- X 8.33% = 8996.40
3500 X 12 = 42000/- X 8.33% = 3498.60
WHETHER ABOVE CALCULATION IS CORRECT AND WHAT IS LIBILITY TO PAY TO STAFF.
RAKESH SRIVASTAVA [/b]
1. IF CONCERN IS IN PROFIT BUT ALLOCABLE SURPLUS IS NEGATIVE OR EQUAL TO BONUS @8.33% ON 3500X12 = 42000 THEN WHAT IS LIABILITY. OF BONUS.
2. ON ABOVE SITUATION IF EARLIAR YEAR BONUS IS CALCULATED ON 3500 X12=42000 INSTEAD OF 2500X12=36000. WHETHER THIS WAS WRONG CALCULATION. THERE IS ANY CHANGE IN CALCULATION THIS WITH THIS MISTAKE.
In addition to the srivastava's comment
If the allocable surplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in repalce of minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum of twenty per cent. of such salary or wage.
Dear Rakesh Srivasthava,
8.33% is the percentage form of 1/12. i.e 100/12 = 8.33. So minimum bonus is equivalent to one month salary for one year. Accordingly maximum bonus will be 2.4 times of one month salary.
Salary ceiling bonus coverage is Rs. 10,000, but for bonus payment the ceiling limit is Rs. 3500 w.e.f.
If the allocable surplus is sufficient for only minimum bonus, payment is done accordingly.
Found This Useful? +Vote Up This Page Via Google.
Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.
Explore Topical Knowledge Areas
Topic Categories >> bonus act bonus payment ceiling limit Location-India-Agra Complete List Of Categories
Interesting Relevant Discussions