Gm (hr)
Finance, Hr, Sectarial Practices, Law And
Santhosh Srivatsav
Hr Personnel
Rajender Bora
Hr Gernalist
+1 Other

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If an employee basic is 2800/- shell we calculate bonus on 2800/- (or) 3500/- Kindly advise
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if any employee basic above 3500/- then we calculate its on 3500/-.
and below 3500/- then we calculate its same below basic .
if any employee basic is 3400/- then we calculate its on 3400/-.
if any employee basic is 4500/- then we calculate its on 3500/-.
Rajender Bora
As per the Bonus act Bonus will be calculated on 2500/- (Maximum). Comany can provide exgratia on remining amount.
Rs. 10000/- is the eligibility amount of Bonus as per the Act, which was 3500/- earlier.
Thanking you
Arindam Ray

Do we need to pay the bonus to the ex employees aswell or to the current employees who had worked for a minimum of 30days in the prev financial year.
Also an employee earning more than Rs.10k/ month are not to be included as per bonus act unless company wants to pay as ex gratia.
Suggest me at the earliest..
all have given the correct suggestion except mr Arvindam who told to calculate on 2500.
secondly If basic+DA is more than 3500 than it will be taken as 3500 for calculation and if it is less than 3500 than it will calculated on actual .please note bonus is paid on Basic+DA.
An employee eligible for the bonus is, who are covered under Section 2(13), Section 2(21) and Section 12 of the payment of Bonus Act, 1965. These Sections are reproduced below, which are self implicit:

Section 2(13) -“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;

Section 2(21)- “salary or wage” means all remuneration (other than remuneration in respect of over-time 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 supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles;
(iii) any traveling 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 from part of the salary or wage of such employee;

Section 12. Calculation of bonus with respect to certain employees.—Where the salary or wage of an employee exceeds 4[two thousand and five hundred rupees] per mensem, the bonus payable to such employee under section 10 or, as the case may be, under section 11, shall be calculated as if his salary or wage were [two thousand and five hundred rupees] per mensem.]
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