Ritika.S.C
3

Dear All, Kindly confirm whether bonus is calculated as 8.33% of basic or gross salary.I am confused about it.
From India, Noida
kumaracme
421

it is 8.33% of basic salary earned in the previous accounting year.
From India, New Delhi
abbasiti
517

Dear Ritika.S.C, Generally basic + DA will be taken into account for bonus calculation. Abbas.P.S
From India, Bangalore
vigna.84@gmail.com
15

Ms.Ritika,

Kindly find below the definition of wages as per Bonus Act...

"salary or wage" means all remuneration (other than

remuneration in respect of overtime work) capable of

being expressed in terms of money, which would, if the

terms of employment, express or implied, were

fulfilled, be payable to an employee in respect of his

employment or of work done in such employment and

includes dearness allowance (that is to say, all cash

payments, by whatever name called, paid to an employee

on account of a rise in the cost of living), but does

not include--

(i) any other allowance which the employee is for

the time being entitled to;

(ii) the value of any house accommodation or of

supply of light, water, medical attendance or other

amenity or of any service or of any concessional supply

of foodgrains or other articles;

(iii) any travelling concession;

(iv) any bonus (including incentive, production

and attendance bonus);

(v) any contribution paid or payable by the

employer to any pension fund or provident fund or for

the benefit of the employee under any law for the time

being in force;

(vi) any retrenchment compensation or any gratuity

or other retirement benefit payable to the employee or

any ex gratia payment made to him;

(vii) any commission payable to the employee.

Explanation.--Where an employee is given in lieu of the

whole or part of the salary or wage payable to him,

free food allowance or free food by his employer, such

food allowance or the value of such food shall, for the

purpose of this clause, be deemed to form part of the

salary or wage of such employee;

Payment of minimum bonus.

10. Payment of minimum bonus.- Subject to the other provisions

of this Act, every employer shall be bound to pay to every employee in

respect of the accounting year commencing on any day in the year 1979

and in respect of every subsequent accounting year, a minimum bonus

which shall be 8.33 per cent. of the salary or wage earned by the

employee during the accounting year or one hundred rupees, whichever

is higher, whether or not the employer has any allocable surplus in

the accounting year:

Provided that where an employee has not completed fifteen years

of age at the beginning of the accounting year, the provisions of this

section shall have effect in relation to such employee as if for the

words "one hundred rupees", the words "sixty rupees" were substituted.

Payment of maximum bonus.

11. Payment of maximum bonus.- (1) Where in respect of any

accounting year referred to in section 10, the allocable surplus

exceeds the amount of minimum bonus payable to the employees under

that section, the employer shall, in lieu of such minimum bonus, be

bound to pay to every employee in respect of

From India, Madurai
vigna.84@gmail.com
15

As per Bonus act
"employee" means any person (other than an apprentice)
employed on a salary or wage not exceeding 1*[three
thousand and five hundred rupees] per mensem in
any industry to do any skilled or unskilled manual,
supervisory, managerial, administrative, technical or
clerical work for hire or reward whether the terms of
employment be express or implied;
so some companies will consider Rs.3500/- as Basic wages for Bonus and they calculate it for 8.33% (Minimum Bonus) or 20% (Maximum Bonus) based on the surplus...
.however many companies are providing two months salary as bonus, they consider all salary components for Bonus calculation...
We shud ensure that the bonus should not be lesser than Rs.292/- per month for the applicable Employees.

From India, Madurai
korgaonkar k a
2556

Dear Ritika.S.C,
You are requested to go through below given link for better understandings on Payment of Bonus Act 1965.
https://www.google.com/url?q=https:/...5KA5STc0sAehXg
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From India, Mumbai
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