Respected all,
we are going to culculate bonus, I would like to know maximum wages limit to culculate bonus. somebody are saying me that monthly wages should not be more than 3500 Rs. for the culculate bonus.
and we also want to know if I give bonus to worker more than 8.33% then on those exceed % will be exempted from tax or not.
if I am right minimum bonus % is 8.33% of Basic salay+ DA (but salary should not be more than 3500 Rs.)
and Maximum bonus % is 20% of Basic salay+ DA (but salary should not be more than 3500 Rs.)
Plz guide me. this is frist time I am going to culculate bonus.
regards,
From India, Lucknow
10we are going to culculate bonus, I would like to know maximum wages limit to culculate bonus. somebody are saying me that monthly wages should not be more than 3500 Rs. for the culculate bonus.
and we also want to know if I give bonus to worker more than 8.33% then on those exceed % will be exempted from tax or not.
if I am right minimum bonus % is 8.33% of Basic salay+ DA (but salary should not be more than 3500 Rs.)
and Maximum bonus % is 20% of Basic salay+ DA (but salary should not be more than 3500 Rs.)
Plz guide me. this is frist time I am going to culculate bonus.
regards,
From India, Lucknow
Dear Shekhar Max wage limit for bonus is 10,000 & for bonus calculation it is 3500. max bonus is 8400 & above 8400 amount is called ex- gratia. regards rahul
From France, Paris
From France, Paris
dear
you are correct.there are two things eligiblity of bonus and calculation of bonus.
the employees getting basic+DA less than 10 k than they are eligible for bonus.
bonus is calculated on 3500 if basic is between 3500 to 10k. it means if someone basic is 6000 ,we will presume it 3500 for bonus purpose and if some one basic is 3000
than it will be counted as 3000.
tks
j s malik
From India, Delhi
you are correct.there are two things eligiblity of bonus and calculation of bonus.
the employees getting basic+DA less than 10 k than they are eligible for bonus.
bonus is calculated on 3500 if basic is between 3500 to 10k. it means if someone basic is 6000 ,we will presume it 3500 for bonus purpose and if some one basic is 3000
than it will be counted as 3000.
tks
j s malik
From India, Delhi
Respected Rahul sir,
When we will calculate bonus on 3500 Rs then how will come amount of 8400 Rs.bcz you are saying max amount of bonus is 8400 Rs.
If I am right then I know the max limit of wages for the calculate ex gratia is 5000 Rs. plz guide me I am very confues. I am new in that area.
regards,
From India, Lucknow
When we will calculate bonus on 3500 Rs then how will come amount of 8400 Rs.bcz you are saying max amount of bonus is 8400 Rs.
If I am right then I know the max limit of wages for the calculate ex gratia is 5000 Rs. plz guide me I am very confues. I am new in that area.
regards,
From India, Lucknow
dear shekhar
see your calculation is on 3500 it means individual basic +DA is 3500 per month.
how much it will be for 12 month,it will be 3500*12,which will be 42000.
now take out the bonus on 42000 @8.33%=RS 3500
now take out bonus max on
i think it should be clear now.
there is no rul or law for calculating ex gratia it is your internal policy of company.
tks
j s malik
From India, Delhi
see your calculation is on 3500 it means individual basic +DA is 3500 per month.
how much it will be for 12 month,it will be 3500*12,which will be 42000.
now take out the bonus on 42000 @8.33%=RS 3500
now take out bonus max on
i think it should be clear now.
there is no rul or law for calculating ex gratia it is your internal policy of company.
tks
j s malik
From India, Delhi
Respected Malik Sir,
Thank u for that.
one question more
my top mgt desided to give bonus only workers who comes under minimum wages. and for office staff he want to give ex gratia amount becuse office staff is not covered under minimum wages. it may be or not.
Regards
From India, Lucknow
Thank u for that.
one question more
my top mgt desided to give bonus only workers who comes under minimum wages. and for office staff he want to give ex gratia amount becuse office staff is not covered under minimum wages. it may be or not.
Regards
From India, Lucknow
dear shekhar
your top management is thinking in illegal way .there is nothing staff and worker in bonus act or bonus calculation.whosever is getting basic+DA less than rs 10000 is eligible for bonus and is to be paid bonus as per the bonus act.
tks
js malik
From India, Delhi
your top management is thinking in illegal way .there is nothing staff and worker in bonus act or bonus calculation.whosever is getting basic+DA less than rs 10000 is eligible for bonus and is to be paid bonus as per the bonus act.
tks
js malik
From India, Delhi
dear shekhar,
first of all you have to know that bonus is payable to employees who have either worked in any of the day in the financial year i.e (april to march). Secondly salary eligiblity should be Rs. 10,000/- component should be (basic+da/vda) thirdly calculation of bonus should be done on Rs. 3500/- i.e bonus salary should be Rs. 3500/-. Consideartion of no. of days would be the paid days of the financial year. %age to be paid is 8.33% will be the minimum & 20% will be the maximum of bonus salary and the calculation formula will be bonus salary(Rs. 3500/-) * no. of months worked perfromed*%age of bonus payment.
thanks & regards,
from,
sumit kumar saxena,
9899669071, 0120-4131277
From India, Ghaziabad
first of all you have to know that bonus is payable to employees who have either worked in any of the day in the financial year i.e (april to march). Secondly salary eligiblity should be Rs. 10,000/- component should be (basic+da/vda) thirdly calculation of bonus should be done on Rs. 3500/- i.e bonus salary should be Rs. 3500/-. Consideartion of no. of days would be the paid days of the financial year. %age to be paid is 8.33% will be the minimum & 20% will be the maximum of bonus salary and the calculation formula will be bonus salary(Rs. 3500/-) * no. of months worked perfromed*%age of bonus payment.
thanks & regards,
from,
sumit kumar saxena,
9899669071, 0120-4131277
From India, Ghaziabad
Dear All,
May I have 2 questions associated with this topic?
1. Does it mean that the min and max bonus per the bonus act is not applied to employees earning Rs10000? or the bonus will be capped at 8.33%-20% X Rs3500? What is the correct bonus calculation for people getting basic >Rs10000?
2. I recently joined a US company. The bonus amount is determined based on the financial result of the internal fisical year from Jan-Dec. The bonus of Jan-Dec 2008 was paid in Feb 2009. There is an employee (>Rs10000) who just resigned and the last day is Mar 31, 2009. Is the resigned employee eligible to the bonus of Jan-Mar 09. What is the appropriate formula for 2009 bonus?
Your valuable advice is appreciated!
Sanjay
From Hong Kong, Kowloon
May I have 2 questions associated with this topic?
1. Does it mean that the min and max bonus per the bonus act is not applied to employees earning Rs10000? or the bonus will be capped at 8.33%-20% X Rs3500? What is the correct bonus calculation for people getting basic >Rs10000?
2. I recently joined a US company. The bonus amount is determined based on the financial result of the internal fisical year from Jan-Dec. The bonus of Jan-Dec 2008 was paid in Feb 2009. There is an employee (>Rs10000) who just resigned and the last day is Mar 31, 2009. Is the resigned employee eligible to the bonus of Jan-Mar 09. What is the appropriate formula for 2009 bonus?
Your valuable advice is appreciated!
Sanjay
From Hong Kong, Kowloon
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf
Bonus-amendment _206.doc