Suppose an employee is receiving:
- Basic: 5000
- Site allowance: 3000
- D.A.: 5000
- H.R.A.: 2500
- Food allowance: 2000
- Mobile allowance: 1000
Total: Rs. 18,500
Please suggest how to calculate the bonus in this case.
From India, Bhubaneswar
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2- Basic: 5000
- Site allowance: 3000
- D.A.: 5000
- H.R.A.: 2500
- Food allowance: 2000
- Mobile allowance: 1000
Total: Rs. 18,500
Please suggest how to calculate the bonus in this case.
From India, Bhubaneswar
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You mentioned that if an employee receives Rs. 5000/- as basic salary and Rs. 5000/- as DA, the total salary for the employee is Rs. 10,000/-. Now, the bonus limit is set at Rs. 3500/- and 10,000/- with a minimum of 8.33%. According to the Payment of Bonus Act, the salary of the employee must be considered at a minimum of Rs. 3,500/- per month. Calculate the employee's salary based on Rs. 3500/- per month for the completed financial year, resulting in Rs. 42,000 * 8.33% = Rs. 3498.6. Therefore, the employee is entitled to Rs. 3498.6 for the financial year. Please let me know if you need further clarification.
Thank you.
From India, Gurgaon
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Thank you.
From India, Gurgaon
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8.33 is the percentage form of 1/12. Accordingly 8.33% is equal to 3500x12x1/12 = 3500 itself, not 3498.6. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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If an employee's salary is Rs. 6500/- and they are on leave for one day, their salary is deducted by Rs. 250/-, leaving them with Rs. 6250/-. In this scenario, one day's salary is deducted from the bonus salary of Rs. 3500/- for bonus calculation. This means the bonus is payable on Rs. 3365/-.
From India, Ahmadabad
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From India, Ahmadabad
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Dear Mr. Mukesh you have stated tat bonus limited is 3500 and 1000. So what we should do with this 10000
From India, Bhubaneswar
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From India, Bhubaneswar
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For the employee who is drawing Rs. 10,000/- as basic plus DA, you should treat their salary as Rs. 3,500/- only, not Rs. 10,000/-. Furthermore, for the employee who is drawing Rs. 10,500/- as basic plus DA, the management is not obligated to provide that employee with bonus benefits.
Thank you.
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From India, Gurgaon
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Thank you.
Regards
From India, Gurgaon
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No, this is incorrect. The salary limit for bonus calculation is capped at Rs. 3500/- per month under the Bonus Act for employees earning between Rs. 3500/- to Rs. 10000/-. In this case, the salary exceeds that threshold. Therefore, even if an employee was absent without leave, their salary for bonus calculation would still be Rs. 3500/- as they are already earning more than that. This is the correct position of the law, and there have been numerous judgments on this point.
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From India, Delhi
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From India, Delhi
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